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IN RE TACOMA BOATBUILDING CO.

Bankruptcy No. 85 B 11535 (BRL), Adv. No. 85-6704A.

129 B.R. 365 (1991)

In re TACOMA BOATBUILDING COMPANY, Debtor. CONTINENTAL ILLINOIS NATIONAL BANK AND TRUST COMPANY OF CHICAGO, individually and as agent for the Bank of California, N.A.; Canadian Imperial Bank of Commerce; the Bank of California, N.A.; and Canadian Imperial Bank of Commerce, Plaintiffs, v. TACOMA BOATBUILDING COMPANY, debtor, At-Sea Incineration; the United States of America, represented by the Secretary of Transportation by and through the Maritime Administration; and the National Bank of Washington, Indenture Trustee, Defendants.

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

July 25, 1991.

Attorney(s) appearing for the Case

Fried, Frank, Harris, Shriver & Jacobson, P.C., New York City by Cory Mitchell Gray, for plaintiffs.

The U.S. Dept. of Justice, Washington, D.C., by Scott Williams, for defendants.

The U.S. Dept. of Transp., The Maritime Admin. by Richard Lorr, Washington, D.C., for defendants.

DECISION AND ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT

BURTON R. LIFLAND, Chief Judge.

I. INTRODUCTION

On September 23, 1985, Tacoma Boatbuilding Company ("Tacoma" or "Debtor"), a Washington based ship manufacturer, filed a petition for reorganization under Chapter 11 of Title 11 of the United States Code (the "Code"). Tacoma became a debtor in possession under Sections 1107 and 1108 of the Code, and its...

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