In re Reading Hotel Corp.

KIRKPATRICK, District Judge.

Reading Hotel Corporation, which owns and operates a large, modern hotel in the city of Reading, filed its petition for reorganization under section 77B of the Bankruptcy Act (11 U.S.C.A. § 207), on September 6, 1934. The real estate was subject to two mortgages — first and second — •sectoring bond issues of $900,000 and $800,000, respectively. Interest was in default, and taxes were due and unpaid. Foreclosure proceedings upon both mortgages had been begun in the state court. This court took jurisdiction and placed the debtor in possession with authority to…