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IN RE MASTERWEAR CORP.

Bankruptcy No. 97 B 47083-88(SMB), Adversary No. 98/8415A.

229 B.R. 301 (1999)

In re MASTERWEAR CORPORATION, et al., Debtors. BNY Financial Corporation, Plaintiff, v. Masterwear Corporation, et al., Defendants.

United States Bankruptcy Court, S.D. New York.

February 1, 1999.

Attorney(s) appearing for the Case

Hahn & Hessen LLP, New York City (John P. Amato, Joshua I. Divack, Maria A. Arnott, Of Counsel), for Plaintiff.

Salomon Green & Ostrow, P.C., New York City (Nicholas F. Kajon, David A. Levin, Of Counsel), for Debtor-Defendants.

Graham & James LLP, New York City (Jeffrey R. Mann, Of Counsel), for Norman Bernard.

Togut, Segal & Segal, New York City (Frank A. Oswald, Neil Berger, Of Counsel), for Signal Capital Corporation and Itel Rail Holdings Corp.

MEMORANDUM DECISION REGARDING CROSS-MOTIONS FOR PARTIAL SUMMARY JUDGMENT

STUART M. BERNSTEIN, Bankruptcy Judge.

Plaintiff BNY Financial Corporation ("BNY"), the debtors' prepetition factor, commenced this adversary proceeding to recover sums allegedly due under the factoring agreement. The debtors denied liability, and asserted several counterclaims. Each party subsequently moved for summary judgment, but preliminarily...

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