Murnighan v. Sheridan

MAJOR, Circuit Judge.

Appellee filed its petition in the court below for reorganization under section 77B of the Bankruptcy Act, as amended (11 U.S.C.A. § 207). On December 24, 1936, the same was approved as properly filed and appropriate notice was given to the creditors, stockholders, and claimants. Later a plan of reorganization was proposed by appellee.' The property of appellee was encumbered with the lien of a trust deed and chattel mortgage dated November 25, 1927, securing a first bond issue in the aggregate amount of $315,000. After default the debtor was voluntarily reorganized under…