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IN RE 50-OFF STORES, INC.

Bankruptcy Nos. 96-54430-C to 96-54433.

231 B.R. 592 (1999)

In re 50-OFF STORES, INC., a Delaware Corporation; 50-Off Multistate Operations, Inc., a Nevada corporation; 50-Off Texas Stores, L.P., a Texas limited partnership; and 50-Off Operating Co., Inc., a Nevada corporation, Debtors

United States Bankruptcy Court, W.D. Texas, San Antonio Division.

February 17, 1999.

MEMORANDUM OPINION

LEIF M. CLARK, Bankruptcy Judge.

50-Off Stores, Inc. filed for reorganization under Chapter 11 of the Bankruptcy Code on October 9, 1996. At the time of the petition, the Debtor owed Kenney Manufacturing, Inc. money for prepetition goods and services. The Debtor subsequently scheduled Kenney's claim as "disputed." In March, 1997 the Debtor solicited Kenney and its other creditors for support...

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