In the MATTER of ALDERSGATE FOUNDATION, INC., Bankrupt. MARK CONSTRUCTION COMPANY, Appellant, v. Frank W. REED, Trustee, Appellee

The Aldersgate Foundation is a non-profit corporation founded to provide housing and other services for the elderly. On March 22, 1972, Aldersgate signed a contract with the Mark Construction Co. for the construction of a retirement center, including a church, a commissary, laundries, and apartment units. The total contract price was $1,830,063.70.

On June 30, 1974, Aldersgate was forced into an equity receivership and, on September 12, 1974, Aldersgate initiated reorganization proceedings under Chapter X of the Bankruptcy Act.

Subsequently, Mark asserted a claim before the bankruptcy trustee…