The trustee of a Chapter X debtor (the case was originally filed in 1975 under the former Bankruptcy Act) objected to multi-million dollar proofs of claim filed by the Government. The Government's claims resulted from debtor's defaults under several military procurement contracts, and included costs of re-procurement, over-payment, recovery of Government property, and other damages. The court found that the debtor's defaults on the contracts were due to circumstances beyond its control, and were the direct result of the Government's improper actions on a different contract. Because the bankrupt's defaults were excusable, the court converted the terminations of the contracts to terminations for the Government's convenience. As a result, the Government lost its claims for excess re-procurement costs and for recovery of unliquidated progress payments. The Government was ordered to re-calculate and resubmit its claims to the court in an amount consistent with the ruling.