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but believed that the inherent risks of litigation and other
factors involved supported the resolution on the terms offered.
However, on April 11, 1995, at a hearing, the bankruptcy court
empowered the trustee to settle and compromise his claims against
all of the defendants, including petitioners, for the sum of $2.2
million to be paid by E&M Investments Co.5 Subsequently, the
trustee was authorized to distribute the foregoing proceeds to
pay certain expenses and creditors.
On November 30, 1995, the bankruptcy trustee filed a "Final
Report" (Final Report) with the bankruptcy court. The report
states:
All property of the estate, except that claimed as
exempt by the debtor, without objection, or determined
by the [bankruptcy] Court as exempt, has been
inventoried, collected and liquidated, or abandoned.
Any property not heretofore abandoned by the trustee is
now abandoned.
All claims have been examined and objections have been
resolved. * * *
Subsequently, on July 15, 1996, based on the trustee's Final
Report, the bankruptcy court issued an order which discharged the
trustee from his responsibilities, and the chapter 7 proceeding
involving New Manchester was adjudged closed.
5Old Manchester's corporate successor and petitioners'
wholly owned company. See supra p. 5.
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