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IN RE LIBBY INTERN., INC.

BAP No. 99-6083.

247 B.R. 463 (2000)

In re LIBBY INTERNATIONAL, INC., Libby Holdings, Inc., Debtors. Mark G. Stingley, Chapter 11 Trustee, Appellee, v. AlliedSignal, Inc., Appellant.

United States Bankruptcy Appellate Panel of the Eighth Circuit.

Decided April 28, 2000.

Attorney(s) appearing for the Case

Scott J. Goldstein, Kansas City, MO, Betsy M. Garvin, appeared on brief, for appellant.

Samuel S. Ory, Kansas City, Mo, for appellee.

Before KRESSEL, SCHERMER and SCOTT, Bankruptcy Judges.

SCOTT, Bankruptcy Judge.

I

Debtor Libby International, Inc. ("Libby"), which manufactured portable electric generating equipment for the United States Air Force, contracted with AlliedSignal, Inc. to obtain engines suitable for use in generators manufactured by Libby International. In March 1998, Libby International owed AlliedSignal over eight million dollars on the contracts for engines. In light of this high debt and in order to facilitate payment, an...

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