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IN RE AMERICAN WHITE CROSS, INC.

Bankruptcy No. 96-1109(PJW). Adversary Nos. A-97-144, 00-10. Civ.A. No. 00-498-RRM.

269 B.R. 555 (2001)

AMERICAN WHITE CROSS, INC., Acme/Chaston Puerto Rico, Inc., and Weaves Manufacturing Corporation, Debtors. AWC Liquidation Corp., Plaintiff, v. Barbara Orentzel, Jack Orentzel, Richard Orentzel, John Mueller, Lawrence Wallerstein, Daniel Chimes, Kaare Numme, Jr., Alene Bertini, Joel Munchoff, and Frank Squillance, Defendants. Electra Investment Trust PLC, and Electra Associates, Inc., Appellants, v. Barbara Orentzel, Jack Orentzel, Richard Orentzel, John Mueller, Lawrence Wallerstein, Daniel Chimes, Kaare Numme, Jr., Alene Bertini, Joel Munchoff, and Frank Squillance, Appellees.

United States District Court, D. Delaware.

November 26, 2001.

Attorney(s) appearing for the Case

Joanne B. Wills, Klehr, Harrison, Harvey Branzburg & Ellers, LLP, Wilmington, DE, for Plaintiff AWC Liquidation Corp.

David B. Stratton, David M. Fournier, and Tara L. Lattomus, Pepper Hamilton LLP, Wilmington, DE, for Appellants Electra Investment Trust P.L.C. and Electra Associates, Inc.

William H. Sudell, Jr., Robert J. Dehney, Morris, Nichols, Arsht & Tunnell, Wilmington, DE; Paul J. Curran, Aaron Stiefel, Kaye, Scholer, Fierman, Hays & Handler, LLP, New York City, for Appellees Barbara Orentzel, et al.

MEMORANDUM OPINION

McKELVIE, District Judge.

This is an appeal from a decision of the Bankruptcy Court in an adversary proceeding between the debtor and a group of creditors. The debtor, American White Cross, Inc. ("AWC"), filed a petition for protection under Chapter 11 of the Bankruptcy Code on July 17, 1996. The creditors are a group of former shareholders of American White Cross Laboratories, Inc. ("AWCL"), a company debtor purchased in 1993. They filed...

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