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IN RE LORBER INDUSTRIES OF CALIFORNIA

BAP Nos. CC-06-1374-BPaMk, CC-06-1395-BPaMk, Bankruptcy No. LA 06-10399 TD.

373 B.R. 663 (2007)

In re LORBER INDUSTRIES OF CALIFORNIA, Debtor. California Self-Insurers' Security Fund, Appellant/Cross-Appellee, v. Lorber Industries of California, Appellee/Cross-Appellant, v. Official Committee of Unsecured Creditors, Appellee/Cross-Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed July 16, 2007.

Attorney(s) appearing for the Case

Louis J. Cisz, Thelen Reid Brown Raysman & Steiner LLP, San Francisco, CA, for California Self-Insurers' Security Fund.

David M. Poitras, Jeffer, Mangels, Smiley, Wang, Ekvall & Strok, Costa Mesa, CA, for Lorber Industries of California.

Before: BRANDT, PAPPAS and MARKELL, Bankruptcy Judges.

OPINION

BRANDT, Bankruptcy Judge.

Post-petition, the chapter 112 debtor, which had self-insured its state statutory workers' compensation obligations, defaulted on those obligations. The state fund established by statute to make the defaulting debtor's compensation payments objected to the debtor's plan, arguing that its claim was entitled to priority as an excise tax under § 507...

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