In Re CLC of America, Inc.

MEMORANDUM OPINION

DAVID P. MCDONALD, Bankruptcy Judge.

INTRODUCTION

On January 13, 1986, CLC of America, Inc. (“CLC”) filed its voluntary Chapter 11 petition in this Court. Prior to bankruptcy CLC had been sued in Arizona state court by Lakeshore Equipment Distributors, Inc. (“Lakeshore”). On May 15, 1986, Lake-shore moved the Court to modify the stay to permit it to continue prosecution of its state court action against CLC. On June 16, 1986, the Court heard Lakeshore’s motion, at which time CLC and the Creditors’ Committee filed a brief opposing Lake-shore’s motion. Lakeshore then requested…