Georgia, Florida & Alabama R. v. Bankers Trust Co.

SIBLEY, Circuit Judge.

In a railroad reorganization proceeding under Section 77 of the Bankruptcy Act, 11 U.S.C.A. § 205, the appellees as mortgage trustees for bondholders filed a claim for $1,750,000 principal and about the same amount for past due interest, with an additional sum for interest on over due interest, promised in the bonds and coupons. The claim was resisted as to the interest items by the debtor, Georgia, Florida and Alabama Railroad Company and by its first preferred stockholders, who by reason of default in dividends have come into control of the Company. The stated ground…