In re Delcon Corp.

THURMOND CLARKE, District Judge.

This matter came before the court for hearing on a petition, filed by certain creditors, for review of an order of the Referee refusing to subordinate to petitioners’ claim the bulk of claims of other creditors in the bankruptcy proceeding.

The facts surrounding this litigation are set forth in the opinion of the Court of Appeals for the Ninth Circuit in Miller v. Sulmeyer, 263 F.2d 513, and need not be detailed here. For the purposes of this review, the material facts are as follows: The Millers, petitioning creditors herein, sold certain personal property to…