158 Misc. 575 | N.Y. Sup. Ct. | 1936
This motion by a committee of creditors of the Lawyers Mortgage Company to stay the Mortgage Commission from taking over the servicing of certificated mortgage issues guaranteed by that company has been withdrawn. The withdrawal of the motion appears to have been based upon the committee’s recognition that the take-over was accomplished as far back as May, 1935, and that there is no legal basis for granting the relief sought, especially in view of the fact that the Mortgage Commission Act (Laws of 1935, chap. 19) expressly authorizes the Commission’s action. It is unfortunate, however, that the Commission has seen fit to exercise its statutory right at a time when plans for the reorganization of the company were reaching an advanced stage, without permitting the servicing of the mortgages to remain with the Lawyers Mortgage Guarantee Corporation until a reasonable opportunity to consummate a plan of reorganization had been afforded to the creditors and others interested. It is
On the other hand, the company, if reorganized with the consent of the holders of its guaranties and others interested, will be permanent and not temporary in character. A take-over at this time can work little or no advantage to the holders of the company’s guaranties, but it may well be the cause of irreparable damage to them. It is to be hoped that the Mortgage Commission will reconsider its action and decide to permit the servicing of the mortgages to remain with the Lawyers Mortgage Guarantee Corporation, under the control of the Superintendent of Insurance, until a reasonable opportunity to work out a plan of reorganization has been afforded to those interested.
The motion is marked withdrawn, in accordance with the request of the moving party.