In the Matter of Xonics Photochemical, Inc., Debtor. Appeal of Mitsui and Company (u.s.a.), Inc

POSNER, Circuit Judge.

This bankruptcy case presents interesting questions concerning the status in bankruptcy of contingent liabilities and in-teraffiliate obligations. For background see Comment, Avoidability of Intercorpo-rate Guarantees Under Sections 548(a)(2) and 544(b) of the Bankruptcy Code, 64 N.C.L.Rev. 1099 (1986). Xonics, Inc., now in Chapter 11 bankruptcy, has several wholly owned subsidiaries that are engaged in making medical equipment. The largest is Xonics Medical Systems, Inc.; one of the smallest is Xonics Photochemical, Inc., the debtor in the proceeding before us. In 1982…