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IN RE KINGSBORO MORTGAGE CORPORATION

No. 69/B/20.

379 F.Supp. 227 (1974)

In the Matter of KINGSBORO MORTGAGE CORPORATION, Bankrupt.

United States District Court, S. D. New York.

July 31, 1974.

Attorney(s) appearing for the Case

Casey, Lane & Mittendorf, New York City (William E. Kelly, James M. Shaughnessy, and John T. Morin, New York City, of counsel), for appellant.

Weisman, Celler, Spett, Modlin & Wertheimer, New York City (Samuel R. Rudey, New York City, of counsel), for trustee-appellee.

Simpson Thacher & Bartlett, New York City (Henry Landau, New York City, of counsel), for appellee Manufacturers-Hanover Trust Co.

OPINION

CANNELLA, District Judge:

This appeal from a decision of Hon. Edward J. Ryan, Bankruptcy Judge, dated March 13, 1974 (summarized at CCH Bankr.L.Rep. ¶ 65,215) and an order subsequently entered thereon (March 25, 1974), raises the question of whether, pursuant to a valid contractual subordination agreement among creditors, certain senior unsecured creditors may recover "post-petition" interest on their indebtedness prior to and from any dividend...

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