Mangel Stores Corp. v. Fabric Tree, Inc.

J. JOSEPH SMITH, Circuit Judge:

Mangel Stores Corporation (“Mangel”), appeals from an order of the United States District Court for the Southern District of New York, Henry F. Werker, Judge, affirming the order of Bankruptcy Judge Roy Babitt, acting in the absence and at the request of Bankruptcy Judge Stanley T. Lesser, which confirms the arrangement of the debtor in possession, The Fabric Tree, Inc. (“Fabric Tree”), pursuant to Chapter XI of the Bankruptcy Act, 11 U.S.C. § 701 et seq. The only issue on appeal is the disposition of $600,000 which Mangel deposited in escrow. Mangel claims that…