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IN RE BANKRUPTCY ESTATE OF MARKAIR, INC.

No. 01-35819.

308 F.3d 1038 (2002)

In re BANKRUPTCY ESTATE OF MARKAIR, INC., Debtor. William Barstow, III, Appellant, v. United States Internal Revenue Service, Appellee.

United States Court of Appeals, Ninth Circuit.

Filed October 21, 2002.

Attorney(s) appearing for the Case

John C. Siemers, Burr, Pease & Kurtz, Anchorage, AK, for the appellant.

Theresa J. Clark, Tax Division, United States Department of Justice, Washington, DC, for the appellee.

Before: B. FLETCHER, ALARCÓN, and GRABER, Circuit Judges.

GRABER, Circuit Judge.

William Barstow, Trustee of the bankruptcy estate of MarkAir, Inc. (MarkAir), seeks to subordinate the proceeds of a judicial lien securing taxes owed to the United States Internal Revenue Service (IRS). The Trustee relies on § 724(b) of the Bankruptcy Code, 11 U.S.C. § 724(b), which subordinates tax liens to the claims of certain priority unsecured creditors. The bankruptcy court denied the Trustee's request to subordinate, and the...

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