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IN RE INCOMNET, INC.

BAP No. CC-03-1064-LKMo, Bankruptcy Nos. SA 99-18854-JR, SA-99-18857-JR, Adversary No. SA 01-1522-JR.

299 B.R. 574 (2003)

In re INCOMNET, INC., a California Corporation; Incomnet Communications Corporation f/k/a National Telephone & Communications, Inc., a Delaware Corporation, Debtors. Post-Confirmation Committee of Unsecured Creditors of Incomnet Communications Corporation, Appellant, v. Universal Service Administrative Company, a Delaware Corporation, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed September 12, 2003.

Attorney(s) appearing for the Case

Michael R. Adele, Albert, Weiland & Golden, LLP, Costa Mesa, CA, for Post-Confirmation Committee of Unsecured Creditors.

Jonathan T. Cain, Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., Reston, VA, for Universal Service Administrative Company.

Before LEE, KLEIN and MONTALI, Bankruptcy Judges.

OPINION

LEE, Bankruptcy Judge.

The Post-Confirmation Committee of Unsecured Creditors of Incomnet Communications Corporation (the "Committee") appeals the bankruptcy court's grant of summary judgment in favor of the Universal Service Administrative Company ("USAC") in this avoidable preference action. The bankruptcy court reasoned that USAC was not a "transferee" from which an avoidable preferential transfer could be recovered. We REVERSE and REMAND...

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