Opinion
No. 7020.
March 2, 1939.
Appeal from the District Court of the United States for the District of New Jersey; John Boyd Avis, Judge.
Proceedings in bankruptcy in the matter of Shelburne, Incorporated, debtor, for reorganization under section 77B of the Bankruptcy Act, as amended, 11 U.S.C.A. § 207, wherein Thomas H. Munyan and others were appointed trustees of the debtor, and William Charlton, a bondholder, dissented from a plan of reorganization consented to by a two-thirds majority of the bondholders. From an order directing the trustees to petition the Court of Chancery of New Jersey requesting that the court issue an order directed to custodial receivers in foreclosure of mortgaged property to file their final account and to turn over to the trustees or to the new corporation provided for in the plan possession of al property of the debtor in their possession as custodial receivers, except any cash or funds in their hands as custodial receivers which should be held for the protection of the obligations incurred by them in the proceedings and for the payment of the reasonable costs and expenses incurred as might be allowed by law, and that they be further ordered after payment of all proper expenses and charges as might be so allowed to pay any balance of funds in their hands to the trustees or to the new corporation, and to make such further order as the Court of Chancery should deem proper to carry into effect the plan of reorganization, as changed and modified, as approved by the District Court, William Charlton appeals.
Affirmed.
Wiliam Charlton, of Atlantic City, N.J. (Emerson Richards, of Atlantic City, N.J., of counsel), for appellant.
George S. Munson, of Philadelphia, Pa., and Francis W. Thomas, of Newark, N.J., for appellee New York Trust Co.
Before BIGGS, MARIS, and CLARK, Circuit Judges.
The decree of the court below is affirmed for the following reasons: First, the order appealed from has been carried out fully by the trustees and the appeal is therefore moot. Second, the order was justified in view of the provisions of Sections 256 and 257 of Chapter 10 of the Bankruptcy Act, as amended, 11 U.S.C.A. §§ 656 and 657.
Affirmed.