Lincoln Building Corp. v. State

Lincoln Forty-Second Street Corporation being in financial difficulties and having defaulted in interest due on its first mortgage bonds, Chase National Bank, as trustee for the bondholders, instituted foreclosure. A receiver of the rents and profits of the premises pendente lite was duly appointed by the court. Upon foreclosure sale a bondholders’ committee, representing about 95% of those interested and acting on their behalf, was the successful bidder. A plan of reorganization, to which the said 95% of bondholders were parties under a deposit agreement, resulted in the incorporation of…