Hegarty v. American Commonwealths Power Corp.

The Chancellor:

American Gas & Power Company claims that on March 31, 1931, prior to the appointment of receivers for the defendant in this cause, it entered into a settlement with the defendant of mutual obligations existing between them, whereby the defendant acquired inter alla certain bonds from it, which the defendant thereafter hypothecated together with other collateral which it had acquired from other sources to secure a loan of $2,963,-598.79 made to it by United States & International Security Corporation. The receivers, very shortly after their appointment, were notified by the…