In the Matter of Hallmark Medical Services, Inc., Debtors. Isaac Mizrahi v. William H. Martin, Trustee

WISDOM, Circuit Judge;

In' this case a group of unsecured creditors in a Chapter X bankruptcy seeks priority ranking under the so-called “six months rule.” The appellant-creditors contend that this rule allows priority to all creditors who furnish credit to a corporate debtor within six months before the appointment of a trustee if such credit is necessary to the continued operation of the debtor. The district court, adopting the recommendations of a special master, disallowed the claim of priority of the six months creditors. Because the district court held as a matter of law that no six…