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IN RE AMES DEPT. STORES, INC.

Bankruptcy No. 01-42217 (REG). Adversary No. 01-8139A(AJG).

274 B.R. 600 (2002)

In re AMES DEPARTMENT STORES, INC., et al., Debtors. LFD Operating, Inc., Plaintiff, v. Ames Department Stores, Inc. and Ames Merchandising Corporation, Defendants.

United States Bankruptcy Court, S.D. New York.

March 8, 2002.

Attorney(s) appearing for the Case

Butler, Fitzgerald & Potter, P.C., Raymond Fitzgerald, of Counsel, New York City, for Plaintiff.

Weil, Gotshal & Manges LLP, Martin J. Bienenstock, Howard B. Comet, of Counsel, New York City, for Defendants.

MEMORANDUM DECISION REGARDING PROCEEDS FROM THE SALE OF PLAINTIFF'S MERCHANDISE IN DEFENDANTS' STORES

ARTHUR J. GONZALEZ, Bankruptcy Judge.

I. Introduction

On September 6, 2001, Plaintiff, LFD Operating Inc. ("LFD"), commenced this adversary proceeding against Defendants, Ames Department Stores, Inc. and Ames Merchandising Corporation (hereinafter, "Ames"), seeking the return of $8.9 million from Ames to LFD. LFD asserts its claim based...

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