Guaranty Trust Co. v. Henwood

In the bankruptcy reorganization of the St. Louis Southwestern Railway Company, a Missouri Corporation, petitioners filed claims for bondholders. They asserted a right under the bonds to be paid in Dutch guilders, and asked that their claims — based upon guilder value — be allowed for $37,335,525.12. The trustee in bankruptcy contended, and the courts below held that the Joint Resolution of June 5, 1933,1 made the bonds dischargeable by payment of current legal tender United States money,2 and petitioners’ claims were accordingly allowed for $21,638,000.00, the face amount of their bonds in…