In the Matter of Freed & Co., Debtor. Akron National Bank & Trust Co. v. Freed & Co.

WEICK, Circuit Judge.

This appeal presents the question whether the Bankruptcy Court has jurisdiction in a Chapter XI proceeding to enjoin a foreclosure proceeding pending in a state court more than four months prior thereto, in order to protect equity in the mortgaged property available to general creditors.

Freed & Company (Freed) owns a tract of land in Medina County, Ohio, on which a subsidiary operates an airport known as Freedom Field. Akron National Bank (the Bank) holds a mortgage on the land to secure various notes which in July, 1974 totaled $1,276,552, including accrued interest;…