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PRECISION INDUSTRIES v. QUALITECH STEEL SBQ

No. 01-2753.

327 F.3d 537 (2003)

PRECISION INDUSTRIES, INC., and Circo Leasing Co., LLC, Appellees, v. QUALITECH STEEL SBQ, LLC, Appellant. In Re: Qualitech Steel Corporation and Qualitech Steel Holdings Corporation, Debtors-in-Possession.

United States Court of Appeals, Seventh Circuit.

Decided April 23, 2003.

Rehearing Denied May 27, 2003.

Attorney(s) appearing for the Case

James P. Moloy (Argued), Dann, Pecar, Newman & Kleiman, Indianapolis, IN, for Appellant.

John K. McDavid (Argued), Locke Reynolds, Indianapolis, IN, for Appellees.

Before ROVNER, DIANE P. WOOD, and EVANS, Circuit Judges.

ILANA DIAMOND ROVNER, Circuit Judge.

In this case of first impression at the circuit level, we are asked to reconcile two distinct provisions of the Bankruptcy Code: 11 U.S.C. § 363(f), which authorizes the sale of a debtor's property free of any "interest" other than the estate's, and 11 U.S.C. § 365(h), which protects the rights of the lessee when the debtor rejects a lease of estate property. The bankruptcy court in this case construed a sale order issued...

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