Rena C. Leo, of the Estate of Dr. Louis S. Leo, Deceased, Petitioning Creditor v. L & M Realty Corporation, a Virginia Corporation, Alleged Bankrupt

This is an appeal from an order of the District Court dismissing a petition in bankruptcy filed on August 16, 1954 against L & M Realty Corporation, a Virginia corporation, based on the ground' that on August 12, 1954' the corporation had committed an act of bankruptcy in that while insolvent, it paid in full a note of $9,000 owing by it to the National Bank of Commerce and a note of $5,000' owing by it to the Seaboard Citizens-Bank, thereby' making a preferential transfer, as defined in 11 U.S.C.A. § 96' sub. a(l), the effect of which was to> enable the banks to obtain a greater percentage…