[DOWNLOAD] "New England Coal & Coke Co. v. Rutland R. Co." by United States Court of Appeals for the Second Circuit # eBook PDF Kindle ePub Free
eBook details
- Title: New England Coal & Coke Co. v. Rutland R. Co.
- Author : United States Court of Appeals for the Second Circuit
- Release Date : January 20, 1944
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 61 KB
Description
On Petition for Rehearing. In their petition for rehearing, appellees cite Guaranty Trust Company v. Seaboard Airline Railway Co., D.C., 53 F.Supp. 672, subsections n and p. of 77, Bankr. Act, 11 U.S.C.A. 205, subs. n, p, and 142 and 506 of the Revenue Act of 1942, 26 U.S.C.A. Int. Rev. Acts, all as showing that, despite 77, an equity receivership is still a permissible method of railroad reorganization. But in the Seaboard case the equity receivership had been begun before the enactment of 77, so that it had not been irregularly instituted, and all parties before the court (including a large majority of the underlying bondholders) opposed the transfer to 77 which the court alone had suggested. As we said in our original opinion (see note 24), equity receiverships, other than consent receiverships, could properly be begun even after the date of the enactment of 77; this gives full scope to the cited statutory provisions. We are not to be understood as holding that a receivership irregularly begun must be dismissed if it is clear beyond all doubt - as it is not in the instant case - that no creditors or stockholders can be adversely affected by a failure to have the reorganization conducted under 77. Nor do we mean that such a receivership must necessarily be dismissed if its irregularity is not called to the court's attention (by the filing of a 77 petition or otherwise) until after the plan has been approved by the court and accepted by an overwhelming majority of those legitimately interested; that is not the situation here.