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IN RE BOSTON REGIONAL MEDICAL CENTER, INC.

No. 01-9016.

291 F.3d 111 (2002)

In Re: BOSTON REGIONAL MEDICAL CENTER, INC., Debtor. Commonwealth of Massachusetts Division of Employment and Training, Appellant, Cross-Appellee, v. Boston Regional Medical Center, Inc., Official Committee of Unsecured Creditors, Appellees, Cross-Appellants.

United States Court of Appeals, First Circuit.

Decided May 31, 2002.

Attorney(s) appearing for the Case

Robert Ganong, Special Assistant Attorney General, with whom Thomas F. Reilly, Attorney General, and Daniel J. Hammond, Assistant Attorney General, were on brief for appellant.

Harold B. Murphy with whom D. Ethan Jeffery and Hanify & King were on brief for appellee.

Before LYNCH, Circuit Judge, and CAMPBELL and BOWNES, Senior Circuit Judges.

LYNCH, Circuit Judge.

This case involves a question of priorities for about three million dollars in unsecured debt owed by a bankrupt medical center. The Commonwealth of Massachusetts asserts it has priority to this sum as reimbursement for unemployment benefits it paid out to employees laid off after the bankruptcy. The estate of the medical center asserts that the Commonwealth has no priority but is in line with other unsecured creditors. The bankruptcy court and...

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