Securities and Exchange Commission v. Crumpton Builders, Inc.

WISDOM, Circuit Judge.

This case presents the question whether a proceeding under Chapter XI of the Bankruptcy Act should be dismissed on the ground that Chapter X of that Act affords the appropriate relief. In light of the nature and history of the bankrupt, the make-up of its equity and debt holders, and the creditor arrangement that it proposed before the district court, we hold that the district court exceeded the proper limits of its judicial discretion in denying the motion of dismissal. We reverse.

Crumpton Builders, Inc., the parent corporation, owns all of the stock of the other nine…