In the Matter of Majestic Energy Corporation, Debtor. Federal Deposit Insurance Corporation v. Majestic Energy Corporation and J.C. Templeton

REAVLEY, Circuit Judge:

This appeal arises from a district court affirmance of a bankruptcy court determination that the Federal Deposit Insurance Corporation’s rights as pledgee under a pledge instrument do not extend to new common stock issued to the pledgor under a bankruptcy plan of reorganization in satisfaction of an unrelated unsecured claim. We affirm.

I

By a pledge instrument dated December 7, 1983 (the “Pledge”), J.C. Templeton pledged 600 shares of preferred stock of Majestic Energy Corporation (“Majestic”) to Bossier Bank & Trust Company (“BB & T”). The Pledge contained the following…