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IN RE AUREAL, INC.

Bankruptcy No. 00-42104 T. Adversary No. 01-4256 AT.

279 B.R. 573 (2002)

In re AUREAL, INC., etc., Debtor. Aureal, Inc., etc., Plaintiff, v. I/O Magic Corporation, etc., Defendant.

United States Bankruptcy Court, N.D. California.

May 22, 2002.

Attorney(s) appearing for the Case

Sidney P. Levinson, Joshua M. Mester, Hennigan, Bennett and Dorman, Los Angeles, CA, for debtor.

Lawrence M. Cron, Senn, Palumbo and Meulemans, Irvine, CA, for defendant.

Minnie Loo, Office of the U.S. Trustee, Oakland, CA, for U.S. Trustee.

MEMORANDUM OF DECISION

LESLIE J. TCHAIKOVSKY, Bankruptcy Judge.

Plaintiff Aureal, Inc. ("Aureal"), the above-captioned chapter 11 debtor, moves for summary judgment in the above-captioned adversary proceeding. Defendant I/O Magic Corporation ("Magic") seeks leave to amend its answer (the "Answer") to add an affirmative defense of recoupment. For the reasons stated below, the Court grants Magic's motion to amend...

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