In the Matter of Air and Space Manufacturing, Inc., Debtor. Kenneth K. Irving and Ralph D. Irving v. Homer E. Capehart, Trustee in Reorganization

DUFFY, Senior Circuit Judge.

A motion by the trustee to dismiss the appeal was taken with the ease. We deny the motion to dismiss and proceed to consider the case on the merits.

On March 21, 1967, a petition for a reorganization of Air and Space Manufacturing, Inc. under Chapter X of the Bankruptcy Act, was filed in the District Court by three of its creditors. On April 7, 1967, the petition was approved by the Court as properly filed, and Homer E. Capehart, Esq., was appointed trustee. An order confirming him as trustee was entered on July 5, 1967.

On July 10, the trustee petitioned for an…