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IN RE APPALACHIAN STAR VENTURES, INC.

No. 93-35224.

341 B.R. 222 (2006)

In re APPALACHIAN STAR VENTURES, INC., Debtor.

United States Bankruptcy Court, E.D. Tennessee.

March 9, 2006.

Attorney(s) appearing for the Case

Linda V. Bailey, Esq., Bailey, Roberts & Bailey, P.L.L.C, Knoxville, TN, for N. David Roberts, Jr., Chapter 7 Trustee.

Fred M. Leonard, Esq., Bristol, TN, for Appalachian Star Ventures, Inc.

MEMORANDUM

MARCIA PHILLIPS PARSONS, Bankruptcy Judge.

In Specker Motor Sales Co. v. Eisen, 393 F.3d 659 (6th Cir.2004), the Sixth Circuit Court of Appeals held that 11 U.S.C. § 726(b)1 mandated the disgorgement of a retainer paid to a chapter 11 debtor's attorney when necessary to achieve a pro rata distribution among other administrative claimants in a case converted from...

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