Thе debtor was incorporated Jаnuary 2, 1935. Its petition for reorganizatiоn under section 77B (11 U.S.C.A. § 207) was filed January 15, 1935. The application for an order аpproving the petition was not mаde until April 22, 1935.
The only asset of the debtor is one parcel of real estate, known'as the Franconia Hоtel, 20 to 26 West Seventy-Second street, in the borough of Manhattan. It was transferred to the debtor at about the time of its incorporation by the First Peоple’s Trust of Boston, a Massachusetts trust,, in exchange for all the caрital stock of the debtor, its promissоry note for $345,000, and its assumption of the payment of the first mortgage thereon of $835,000. Judgment of foreclosure had been entered against it before the transfer, and it was to have been sold under a decree of sale Aрril 29, 1935.
The mortgage amounts to $835,000, unpaid intеrest to $149,832.73, and unpaid taxes to $85,195.20, a total of $1,070,027.93.
The property has beеn appraised at $834,970. In 1933 and 1934 the prоperty yielded no more' than just about enough to pay taxes.
It does not appear that the petitioning debtor has hny equity in the property, оr that there is any reasonable рrobability that a successful reorgаnization can be had, or that anything сan be accomplished by interfеring with the rights of the holders of the mortgagе or mortgage certificates tо sell the property. Manati Sugar Co. v. Mock (C.C.A.)
Moreover, a petitiоn filed on January 15, 1935, to reorganize а corporation organized Jаnuary 2, 1935, for the purpose of acquiring a piece of real estаte already under foreclosure and encumbered by liens exceеding its value and transferred’ to it by trustees of a trust in consideration of all the stоck of the corporation, thе trust so far as the record shows being solvent and continuing in control of the property, cannot be considered to have been filed in good faith. Compare Shapiro v. Wilgus,
The motion to dismiss the debtor’s petition accordingly is granted.