In re Hotel Governor Clinton, Inc.

PATTERSON, District Judge.

The debtor is under reorganization in a proceeding brought under section 77B of the Bankruptcy Act, as amended, 11 U.S.C.A. § 207. The particular problem is the disposition of a fund of $100,000 and interest, held by Central Hanover Bank & Trust Company as trustee and known in this proceeding as the tunnel fund. A committee representing holders of Series A bonds asks that the fund be applied toward payment of back taxes on the debtor’s property. This is opposed by certain bondholders, who ask that the fund be distributed pro rata among the Series A bondholders.

The…