Weiss v. Fleetwood Bank

“ Let’s Go to Murray’s, Inc.,” which conducted a restaurant in Tuckahoe, filed on January 27, 1939, a debtor petition for an “ arrangement ” under chapter 11 of the Bankruptcy Act in the United States District Court for the Southern District of New York. Thereupon the court enjoined creditors from interfering with or transferring the debtor’s property until further order. The debtor continued in business and remained in possession of its property until September 19, 1939, when, because the “ arrangement ” failed of consummation, the debtor was adjudicated a bankrupt and plaintiff became its…