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IN RE CATHEDRAL OF INCARNATION

Nos. 527, 594 to 596 and 974, Dockets 94-5064, 94-5066, 94-5072, 94-5076 and 95-5026.

90 F.3d 28 (1996)

In re CATHEDRAL OF the INCARNATION IN the DIOCESE OF LONG ISLAND, Debtor. CATHEDRAL OF the INCARNATION IN the DIOCESE OF LONG ISLAND, Debtor-Appellant, Cross-Appellee, Incorporated Village of Garden City, in the Matter of the Application of the Incorporated Village of Garden City to acquire fee title to the land and improvements thereon at the northwest corner of Stewart and Rockaway Avenues, known as the St. Paul's School site; Official Committee of Unsecured Creditors, Appellants-Cross-Appellees, v. GARDEN CITY COMPANY, INC., Appellee-Cross-Appellant, The Attorney General of the State Of New York; Fleet Bank, and United States Trustee Office, Interested Parties.

United States Court of Appeals, Second Circuit.

Decided July 9, 1996.

Attorney(s) appearing for the Case

Edward J. LoBello, New York City (Thomas L. Kent, Marks & Murase, New York City, of counsel, Anderson Kill Olick & Oshinsky, New York City, on the brief), for Debtor-Appellant-Cross-Appellee Cathedral of the Incarnation and Cross-Appellee Official Committee of Unsecured Creditors.

Peter J. Mastaglio, Garden City, N.Y. (James G. Ryan, Cullen and Dykman, Garden City, N.Y., of counsel), for Appellant Village of Garden City.

F. Judith Hepworth, Uniondale, N.Y. (Dolores Fredrich, Michael J. Healy, Farrell, Fritz, et al., Uniondale, N.Y., of counsel), for Appellee-Cross-Appellant Garden City Company, Inc.

Arthur Steinberg, New York City (Kaye, Scholer, Fierman, Hays & Handler, New York City, on the brief), for Interested Parties.

Before OAKES, McLAUGHLIN and LEVAL, Circuit Judges.

LEVAL, Circuit Judge:

This complex appeal arises from the efforts of the Cathedral of the Incarnation in Garden City, New York (the "Cathedral"), to extricate itself from financial difficulties. In 1993, the Cathedral filed for bankruptcy protection under Chapter 11.

The Cathedral's principal asset, and the subject of this controversy, was a valuable parcel of land (the "Property"), a 48.6 acre tract, which the Cathedral had acquired in the latter part of...

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