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IN RE SOUTHERN MEDICAL ARTS COMPANIES, INC.

BAP No. WO-05-116, Bankruptcy No. 00-18635-WV, Adversary No. 01-1122-WV.

343 B.R. 250 (2006)

In re SOUTHERN MEDICAL ARTS COMPANIES, INC., formerly doing business as Pathchor, Inc., doing business as Southwest Medical Holdings, Inc., Debtor. Aaron J. Korngold and Healthcare Acquisitions, Inc., Appellants, v. Janice Loyd, Trustee, Plaintiff — Appellee, and Foxglove, Inc., Defendant — Appellee.

United States Bankruptcy Appellate Panel for the Tenth Circuit.

June 5, 2006.

Attorney(s) appearing for the Case

Submitted on the briefs:* John A. Burkhardt of Boone, Smith, Davis, Hurst & Dickman, Oklahoma City, Oklahoma, for Appellants.

James A. Bellingham of Bellingham, Collins, & Loyd, P.C., Tulsa, Oklahoma, for Plaintiff — Appellee.

Jackie L. Jill, Jr. of Dunn, Swan, & Cunningham, P.C., Oklahoma City, Oklahoma, for Defendant — Appellee.

Before MCFEELEY, Chief Judge, NUGENT, and BROWN, Bankruptcy Judges.

OPINION

MCFEELEY, Chief Judge.

Creditor/Appellants Aaron J. Korngold and Healthcare Acquisitions, Inc., (hereinafter referred to jointly as "Korngold"), appeal from an order of the bankruptcy court for the Western District of Oklahoma which authorized the trustee to enter into a settlement with Creditor/Defendant/Appellee Foxglove. Korngold argues that the bankruptcy court erred for the following reasons: (1) the bankruptcy court did not have subject matter...

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