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IN RE KLN STEEL PRODUCTS CO., LLC

Bankruptcy Nos. 11-12855, 11-12856, 11-12858, 11-13154. Adversary No. 13-01013.

506 B.R. 461 (2014)

In re KLN STEEL PRODUCTS CO., LLC, Dehler Manufacturing Co., Inc., Furniture By Thurston, and 4200 Pan Am, LLC, Debtors. Michael Ciesla, Trustee of the KLN Liquidating Trust, Plaintiff, v. Harney Management Partners, Defendant.

United States Bankruptcy Court, W.D. Texas, Austin Division.

Signed February 18, 2014.

Attorney(s) appearing for the Case

Marvin E. Sprouse, III , Patricia Baron Tomasco , Jennifer Francine Wertz , Jackson Walker, L.L.P., Austin, TX, for Plaintiff.

Lynn H. Butler , Se H. Chang , Husch Blackwell LLP, Austin, TX, for Defendant.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

TONY M. DAVIS, Bankruptcy Judge.

In this case, the Court must determine whether payments should be recovered by the trustee of a liquidating trust from restructuring consultants hired to advise a bankrupt business prior to its bankruptcy filing, or whether those payments are protected from recovery by the "ordinary course of business" or "new value" defenses.

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