In Re Industrial MacHine & Supply Co.

GOURLEY, Chief Judge.

This matter comes before the court on application for payment of fiaal allowances and reimbursement for various loans granted the debtor corporation.

Divers loans were made to the Debtor by ‘Trustee and his counsel during the reorganization of the debtor corporation. The record fails- to disclose any authorization on the part of this court to make said loans as required by the Chandler Act, 11 U.S.C.A. § 516(2). The law is undisputed that a debtor cannot borrow money without authority. Indeed, one lending money to a corporate debtor in corporate reorganization proceeding…