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IN RE JAZZ PHOTO CORP.

No. 03-26565 (MS).

312 B.R. 524 (2004)

In the Matter of JAZZ PHOTO CORP., Debtor-in-Possession.

United States Bankruptcy Court, D. New Jersey.

August 3, 2004.

Attorney(s) appearing for the Case

Michael D. Sirota, Esq., Cole, Schotz, Meisel, Forman & Leonard, PC, Hackensack, NJ, for Jazz Photo Corp.

Michael S. Etkin, Esq., Bruce Buechler, Esq., Lowenstein Sandler, PC, Roseland, NJ, Lawrence Rosenthal, Esq., Stroock, Stroock & Lavan, LLP, New York, NY, for Fuji Film Co., Ltd.

Margaret Jurow, Esq., Office of the United States Trustee, Newark, NJ, Howard S. Greenberg, Esq., Ravin Greenberg, PC, Roseland, NJ, for Official Committee of Unsecured Creditors.

Dennis O'Grady, Esq., Riker Danzig, Morristown, NJ, for Jack C. Benun.

OPINION

MORRIS STERN, Bankruptcy Judge.

I. Background

Sanctions are sought against both a creditor and its counsel who are accused of filing and pursuing, out of ill-will and without reasonable factual underpinnings, a motion to have a Chapter 11 trustee appointed.

Jazz Photo Corp. ("Jazz") and its operating principal, Jack Benun,1 were driven into Chapter 11 bankruptcy cases by an unrelenting...

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