Cincinnati Rubber Mfg. Co. v. John T. Towsley Mfg. Co.

On August 21, 1930, the defendant was unable to pay its debts as they matured. It recited that fact in an agreement entered into by it, as party of the first part, with three individuals acting as a committee of all its creditors, as party of the second part, and all its creditors as parties of the third part. By the agreement the committee of creditors was placed in control of the operation of the defendant’s business, including the purchase of supplies and the control of the receipts and disbursements, all for the purpose of conserving the net assets for distribution primarily among the…