Block v. City of West Palm Beach

HUTCHESON, Circuit Judge.

Pursuant to a Plan of Adjustment of appellee city’s debts, the holders of 93% of the indebtedness, accepted and received refunding bonds, issued August 1, 1936. Appellants are the holders of 188 of these bonds. As such holders, appellants sued the appellees, City and Cook & Company, alleging that the City, in abandonment and violation of the terms of the January 1, 1936, contract,1 under which the bonds were refunded, had dismissed proceedings in bankruptcy which it filed under Section 83, sub. j of the Bankruptcy Act to compel the 7% non-assenting bondholders to come…