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IN RE AR ACCESSORIES GROUP, INC.

Bankruptcy No. 98-22580-JES. Adversary No. 98-2500.

267 B.R. 583 (2001)

In re AR ACCESSORIES GROUP, INC., Debtor. Scott Peltz, Trustee of the AR Accessories Group, Inc. Liquidating Trust, and Bank One, Wisconsin, Plaintiffs, v. Wisconsin Department of Workforce Development, Defendant.

United States Bankruptcy Court, E.D. Wisconsin.

July 18, 2001.

Attorney(s) appearing for the Case

Robert M. Fishman, Brian L. Shaw, Shaw Gussis Domanskis Fishman & Glantz, Chicago, IL, for Trustee.

Peter C. Blain, Mark L. Metz, Thomas J. O'Brien, Reinhart Boerner Van Deuren Norris & Reiselbach s.c., Milwaukee, WI, for Lenders.

Richard E. Braun, Assistant Attorney General, Wisconsin Department of Justice, Madison, WI, for Defendant.

DECISION

JAMES E. SHAPIRO, Bankruptcy Judge.

This controversy pits the interests of Bank One, Wisconsin, on behalf of itself and as agent for First Bank Milwaukee N.A. and Harris Bank ("Lenders"), and Scott Peltz, trustee of AR Accessories Group, Inc. Liquidating Trust ("trustee")1, against the Wisconsin Department of Workforce Development, on behalf of the former employees of the debtor ("Department"). Each side contends that...

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