In Re Diversey Bldg. Corporation

SPARKS, Circuit Judge.

This is an appeal from an order of the District Court perpetually restraining and enjoining appellants, creditors of the debt- or, from instituting or further prosecuting any proceedings at law or in equity against the debtor, or against Fred Becklenberg, on account of any of the bonds secured by the debtor’s trust deed of May 22, 1924, and guaranteed by Becklenberg.

The debtor by its trust deed had conveyed its property to a trustee to secure its first mortgage, six and one-half per cent bond issue of $1,250,000, and Becklenberg, on the same day, had unconditionally…