Opinion
Gen. No. 40,686. (Abstract of Decision.)
Opinion filed February 23, 1940 Rehearing denied April 1, 1940
FORECLOSURE OF MORTGAGES, § 293.1 — reorganization, sufficiency of evidence to show fraud. In action by bondholder to restrain foreclosure and reorganization, house of issue was not guilty of fraudulent conduct in failing to inform bondholders of mortgagor's delinquency, in acquiring an equity which was made subordinate to that of the bondholders, in postponing foreclosure proceedings for a time, in not making all bondholders parties to an accounting with mortgagor, and in advising deposit of bonds on grounds nondepositors would probably receive substantially less than the value of the new securities.
See Callaghan's Illinois Digest, same topic and section number.
Appeal from Circuit Court of Cook county; Hon. J. PRYSTALSKI, presiding.
Affirmed. Heard in second division, first district, at February term, 1939.
Shulman, Shulman Abrams, for appellant;
Meyer Abrams, of counsel;
Gottlieb Schwartz, Sonnenschein, Berkson, Lautmann, Levinson Morse, for appellees;
Claude A. Roth, Harry E. Smoot and J.F. Bishop, of counsel.
"Not to be published in full." Opinion filed February 23, 1940; rehearing denied April 1, 1940.