Bondholders' Protective Committee of Marquette Apartments v. Chain Inv. Co.

EVANS, Circuit Judge.

Two questions are before us: (1) May a court, on its own motion, over objection of secured creditors (first mortgage bondholders), modify a plan of reorganization so as to transfer the control of management from secured to unsecured creditors without submitting the modification to, and obtaining the consent of, the necessary per^ centage of first mortgage bondholders? (2) Was it fair and just to all parties for a court to modify the plan of reorganization whereby control of management is transferred from secured creditors who hold the preferred stock in the reorganized…