Pelham Hall Co. v. A. B. & M. Liquidation Corp.

PETERS, District Judge.

The question raised by these suits in equity, commenced under the old practice, is whether certain bonds and coupons, under the circumstances disclosed, should be treated as' outstanding secured obligations of the issuing corporation in a reorganization plan, they having been paid and taken up at maturity by another corporation having no obligation to do so. Both cases, in which the facts are substantially the same, were heard together in the District Court, and were decided below in one opinion.

The District Court decided that the transactions were in effect a sale and…