In Re McCrory Stores Corporation

PATTERSON, District Judge.

A prior plan of reorganization was rejected as discriminating unfairly in favor of United Stores Corporation. It was held that the landlords’ claims purchased by the United could not be valued for purposes of reorganization at more than the amount paid for them by the United, plus the reasonable cost of acquisition. Since the plan then under consideration gave to the United more than that figure, it was disapproved. The opinion on that plan contains an outline of the claims against the company and of its capital structure.

Two plans have since been submitted, each of…