In re Colonial Trust Co.

This is a proceeding brought pursuant to the provisions of section 122-a of the Beal Property Law for a modification of the trust mortgage bonds and indenture given in a prior reorganization. It is proposed to modify these bonds and the indenture so that a new first mortgage might be raised upon the mortgaged property, the proceeds thereof distributed prorata among the bondholders in reduction of the principal amount unpaid upon their bonds, and the present first mortgage bonds thereby reduced to the status of second mortgage bonds.

In opposition to the foregoing proposed modification, it is…