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IN RE BANKRUPTCY ESTATE OF MARKAIR, INC.

Nos. 01-35892, 01-35901.

308 F.3d 1057 (2002)

In re BANKRUPTCY ESTATE OF MARKAIR, INC., Debtor. North Slope Borough, Appellant, v. William Barstow, III, Trustee for the Bankruptcy Estate of MarkAir, Inc., Appellee. In re Bankruptcy Estate of MarkAir, Inc., Debtor. Municipality of Anchorage, Appellant, v. William Barstow, III, Trustee for the Bankruptcy Estate of MarkAir, Inc., Appellee.

United States Court of Appeals, Ninth Circuit.

Filed October 21, 2002.

Attorney(s) appearing for the Case

David D. Clark, Law Office of David D. Clark, Robert P. Crowther, Law Office of Robert Crowther, and William A. Greene, Municipal Attorney, Municipality of Anchorage, Anchorage, AK, for the appellants.

John C. Siemers, Burr, Pease & Kurtz, Anchorage, AK, for the appellee.

Before: B. FLETCHER, ALARCÓN, and GRABER, Circuit Judges.

GRABER, Circuit Judge.

North Slope Borough and the Municipality of Anchorage (Creditors) held tax liens on real property formerly owned by MarkAir, Inc., a Chapter 7 bankruptcy debtor. The Creditors seek part of the proceeds from a sale of that property by the debtor's estate. The Trustee of the estate, William Barstow, seeks to subordinate the Creditors' tax-lien claims entirely to the claims of priority unsecured creditors...

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