San Diego Wholesale Credit Men's Ass'n v. Bartlett

— Defendant appeals from a judgment on an agreement to purchase shares of preferred stock.

As the result of financial difficulties, El Nadadero, Inc., a corporation, filed a petition under chapter XI 1 of the Bankruptcy Act and pursuant thereto listed its creditors and submitted to the referee in bankruptcy a plan for settling their claims. One part of the plan, entitled “Arrangement With its Unsecured Creditors,” 2 proposed that debtor El Nadadero issue preferred stock to the unsecured creditors in satisfaction of their claims.

Defendant and Glasford each owned one-third of the shares of…