In the Matter of Chelsea Hotel Corporation, Debtor, Morris Corson and Joseph E. Kaufman

SORG, District Judge.

This is an appeal from an order of the District Court awarding $12,500.00 as liquidated damages to the Trustee of a debtor corporation for failure to comply with the terms upon which a public sale was postponed at the request of the appellants.

Pursuant to the provisions of a certain plan of reorganization under Chapter 10 of the Bankruptcy Act, 11 U.S.C.A. § 501 et seq., assets of the debtor, known as the Chelsea Hotel, were ordered to be sold at public auction in the United States Courtroom, Camden, New Jersey, on August 13, 1956, by order of the United States District…