United Merchants & Manufacturers, Inc. v. J. Henry Schroder Bank & Trust Co.

Appellees are indenture trustees for debenture issues which appellant United Merchants and Manufacturers, Inc. (the “debt- or”) had outstanding on the date of its petition for an arrangement under Chapter XI of the Bankruptcy Act (the “Act”), 11 U.S.C. §§ 701 et seq. (1970). After the proposal and acceptance of a plan of arrangement (the “plan”), appellees applied to the bankruptcy court for compensation for services rendered during the bankruptcy proceeding and for attorney’s and accountant’s fees incurred during that period. They based their application on covenants in the indentures under…