In Re Eastern Bancorporation

OPINION

EMIL F. GOLDHABER, Bankruptcy Judge:

The issue at bench is whether the debtor’s petition for a reorganization under chapter 11 of the Bankruptcy Code (“the Code”) was duly authorized under its corporate bylaws and the Pennsylvania Business Corporation Law (“the PBCL”). We conclude that the petition was validly authorized because: (1) the specific default provisions of the pledge agreement involved herein, made between the pledgee and the shareholder-pledgor of the debtor’s stock, govern over the general provisions of the PBCL; (2) under those default provisions, the pledgee succeeded to…