Mason v. Merced Irr. Dist.

MATHEWS, Circuit Judge.

On June 17, 1938, appellee, Merced Irrigation District, filed a petition under1 chapter 9 (§§ 81-84) of the Bankruptcy Act, 11 U.S.C.A. §§ 401-404. At the time of filing the petition, appellee had outstanding $16,190,000 of bonds, hereafter called old1 bonds, of which $18,000 (18 bonds of the-face value of $1,000 each) were owned and held by appellant, J. R. Mason. With the petition, appellee filed and submitted a plan-of composition, which provided for the retirement of the old bonds by paying to the-holders 51.501% of the principal amount thereof.

The petition was…