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IN RE BOSTON SHIPYARD CORP.

Bankruptcy No. 84-1335-HL, Adv. No. A87-1041.

76 B.R. 4 (1987)

In re BOSTON SHIPYARD CORPORATION. FIREMAN'S FUND INSURANCE COMPANY, Plaintiff, v. UNITED STATES of America and Boston Shipyard Corporation, Defendants.

United States Bankruptcy Court, D. Massachusetts.

May 11, 1987.

Attorney(s) appearing for the Case

Hertz N. Henkoff, Barron & Stadfeld, Boston, Mass., for debtor.

Kenneth Oestreicher, Civ. Div., Dept. of Justice, Washington, D.C., Joseph S. Ackerstein, Asst. U.S. Atty., Robert S. Mueller, III, U.S. Atty., Boston, Mass., Richard K. Willard, Asst. Atty. Gen., for Government.

Paul R. Devin, Peabody & Arnold, Boston, Mass., for Fireman's Fund.

MEMORANDUM ON DEFENDANTS' MOTION TO DISMISS

HAROLD LAVIEN, Bankruptcy Judge.

Fireman's Fund Insurance Company was the performance bond surety on a contract between the debtor, Boston Shipyard Corporation (hereafter, "BSC") and the Panama Canal Commission, (hereafter, "PCC") for the construction of a tugboat. In January, 1987, BSC and the PCC requested this Court to approve a settlement under which the PCC would pay BSC $1,045,000 on claims unrelated to the...

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