Chemical Corn Exchange Bank v. Brous

The motion is for summary judgment on a guaranty. It appears that a corporation known as Miss Cane, Inc. was in financial difficulty. It owed several creditors, including this plaintiff to. which it owed $50,000 on a note. *373On July 22, 1955 an extension agreement with the creditors and with defendant Brous was signed. By the terms of this agreement Brous advanced $100,000 to the corporation. All of the creditors designated their claims as “ old debts ” and subordinated them to ‘ ‘ new debts ’ ’ which were obligations thereafter created. Fifty per cent of each of the old debts were to be paid…