In Re Cable-Link Corporation

FREEMAN, District Judge.

In this case, the petitioner Paul Nesbit seeks review of an order of the Referee in Bankruptcy disallowing Nesbit’s claim of security as to $7,000 of his "claim for $32,000.

Cable-Link Corporation, the bankrupt, was at all times insolvent. In February or March, 1953, Nesbit loaned the bankrupt $25,000 and was given an option for repayment in cash or stock, which portion of his claim is unsecured and is not in dispute. On April 9, 1953, Nesbit loaned the bankrupt an additional sum of $3,000 and received a thirty-day note, which included an agreement by the bankrupt to…