202 F. 896 | 1st Cir. | 1913
This purports to be a petition under section 24b of the. Bankruptcy Act to revise an order'made October 12, 1912, by the District Court in Maine, in a bankruptcy case pending before it. • _
It is undisputed on the record before us that the bankrupt in this case is the United Wireless Telegraph Company, a corporation; that it has been adjudged bankrupt upon an involuntary petition against it; that three trustees have been appointed and are acting; and that its estate is in process of administration under the Bankruptcy Act. By an order made April 4, 1912, the District Court, with the consent and approval of the creditors, authorized and directed the trustees to accept a certain offer made to them for the purchase of certain properties belonging to the bankrupt estate. They accordingly made an agreement with the intending purchaser for a sale of the properties upon the approved terms. Part of the agreed price had been paid to them, and certain stock delivered to them, to be held as security for the balance remaining due. Thereupon also on April 4, 1912, they had reported their doings as above to the court, and the court had entered an order confirming the sale.
There has been no attempt, so far as the record shows, to revise or appeal from any of the orders of court authorizing and confirming the sale. But in his petition filed May 22, 1912, the petitioner asked
The purchaser at the sale is a reorganization committee of the bankrupt’s stockholders. The only allegation in the petition tending to show that the petitioner has any standing in the bankruptcy case, for any purpose, is that he owns 50 shares of stock in the corporation. His petition sets forth that it is brought on behalf of himself and of other stockholders similarly situated, who may care to join in the proceeding and share the expense involved. No other stockholder, however, has appeared to join in it.
The grounds set forth in the petition to the bankruptcy court for the relief therein sought were certain alleged doings of the reorganization committee, claimed to have been in violation of the rights of stockholders. It was asserted that terms prescribed by the committee, upon which stockholders might subscribe to a plan of reorganization, were inequitable, and such that many stockholders could not comply with them. It was asserted that the committee was reselling the assets purchased by it for certain stock of another company, and that, unless this stock was distributed pro rata among the bankrupt’s stockholders, the effect of the trustees’ sale would be to let certain stockholders profit at the expense of a majority. The bankruptcy court was asked to require the trustees, before completing the sale ordered, to modify their agreement with the committee so as to require the “distribution of any proceeds over and above the amount necessary to satisfy the indebtedness of the bankrupt and the expenses of this proceeding equally among all the stockholders.”
Let there be a decree affirming the order of the District Court, with costs for the respondents.