In re Dairyland, Inc.

Helfrich, J.,

Normington Dairy, Inc., which later changed its corporate name to Avon-dale Farms Dairy, Inc., created for the purpose of “manufacturing, buying, selling and dealing in milk, cream, cheese and food products of all kinds”, was reorganized under section 77-B of the Federal Bankruptcy Act on October 9,1940. All of its prior creditors were fully paid, receiving part cash and part the equivalent thereof, i. e., debenture certificates of the corporation.

At that time the Reconstruction Finance Corporation loaned to Avondale Farms Dairy, Inc., which later again changed its name to…