Taylor v. Standard Gas & Electric Co.

The question presented is whether the District Court abused its discretion in approving the compromise of a claim by a parent against a subsidiary corporation and a' plan of reorganization based upon the compromise, in proceedings under § 77B of the Bankruptcy Act. The Circuit Court of Appeals, by ,a divided court, approved the District Court’s order.

The petitioners are a committee for the protection of preferred stockholders. The respondents are the trustee of the debtor, Deep Rock Oil Corporation (a Delaware corporation whose business was that of producing, refining, and selling gasoline,…