In re TMT Trailer Ferry, Inc.

Citation334 F.2d 118
Decision Date19 October 1964
Docket Number20563.,No. 19996,19996
PartiesIn the Matter of TMT TRAILER FERRY, INC., Debtor. The PROTECTIVE COMMITTEE FOR INDEPENDENT STOCKHOLDERS OF TMT TRAILER FERRY, INC., Appellant, v. C. Gordon ANDERSON, Trustee, Appellee.
CourtUnited States Courts of Appeals. United States Court of Appeals (5th Circuit)

Irwin L. Langbein, West Palm Beach, Fla., Malcolm S. Mason, Irma S. Mason (of the District of Columbia Bar), New York City, for appellant.

William P. Simmons, Jr., Miami, Fla., C. C. Larimore, Shutts, Bowen, Simmons, Prevatt & Boureau, Miami, Fla., for appellee.

Cravath, Swaine & Moore, John F. Hunt, Jr., New York City, for appellee Allied Assets Corp.

David Ferber, Assoc. Gen. Counsel, Philip A. Loomis, Jr., Gen. Counsel, Paul Ganson, Atty., S.E.C., Washington, D. C., Lloyd G. Bates, Jr., Asst. U. S. Atty., Miami, Fla., Carl W. Painter, New York City, Peter A. Dammann, Gen. Counsel, Robert Cox, Atty., S.E.C., Washington, D. C., Paul G. Hyman, Edward W. Patton, Jackson L. Peters, W. G. Troxler, Frank J. Kelly, Linwood Anderson, Miami, Fla., Francis D. Wheeler, Jacksonville, Fla., Ben Lawson, Miami, Fla., M. James Spitzer, Lee Pressman, New York City, for appellee.

Before RIVES, JONES and WISDOM, Circuit Judges.

Rehearing Denied in No. 19996 August 14, 1964.

Certiorari Denied October 19, 1964. See 85 S.Ct. 147.

PER CURIAM.

These two appeals are here consolidated. They are taken from the trial court's determination that the bankrupt is insolvent and its later order confirming a plan of reorganization. The appeals were consolidated for argument by order of this Court with United States v. Anderson, Trustee, 5 Cir., 334 F.2d 111. In view of the decision there rendered we remand this proceeding to the district court for a determination of the feasibility of consummating the present plan. If it be found that the present plan is not feasible, after giving to the Government the priority accorded it in the opinion in the companion case of United States v. Anderson, then it may be a new plan, based upon an updated determination of insolvency, can be submitted.

In light of the decision to remand this case, it is unnecessary to determine all of the several issues raised by the appeal. However, one question was submitted by the parties, the answer to which will materially lessen uncertainty in subsequent proceedings. Prior to the approval of the plan presently under discussion contracts of employment between the major creditors and the trustee and two of his subordinates were introduced into the record as part of the plan. They were eventually stricken from the plan, prior to confirmation, and the following provision was the only allusion to the subject:

"It is necessary that competent management, which might include present management, be employed to operate the reorganized company and that any such management contract is to be approved by the new Board of Directors and the Court."

Briefly stated, it is the contention of the appellant and the Securities and Exchange Commission that the fact that the trustee was to take over the presidency of the reorganized company vitiated the plan. It is...

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5 cases
  • TMT Trailer Ferry, Inc., Matter of
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • 10 d4 Agosto d4 1978
    ...States v. Anderson, 5 Cir., 334 F.2d 111, certiorari denied, 379 U.S. 879, 85 S.Ct. 147, 13 L.Ed.2d 86 (1964); In re TMT Trailer Ferry, Inc., 5 Cir., 334 F.2d 118 (1964); Protective Committee v. Anderson, 5 Cir., 364 F.2d 936 (1966), reversed, 390 U.S. 414, 88 S.Ct. 1157, 20 L.Ed.2d 1 (1968......
  • Protective Committee For Independent Stockholders of Tmt Trailer Ferry, Inc v. Anderson, 38
    • United States
    • U.S. Supreme Court
    • 25 d1 Março d1 1968
    ...United States v. Anderson, 334 F.2d 111 (C.A.5th Cir.), cert. denied, 379 U.S. 879, 85 S.Ct. 147, 13 L.Ed.2d 86 (1964); In re TMT Trailer Ferry, Inc., 334 F.2d 118 C.A.5th Cir. 1964). 2 The order of the District Court discharging the petitioner Committee was later modified to permit the Com......
  • United States v. Anderson
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • 19 d1 Outubro d1 1964
    ... ... §§ 501-676, for the reorganization of TMT Trailer Ferry, Inc., has been pending for more than six years, and has been before this Court on three ... ...
  • PROTECTIVE COM. FOR IND. S. OF TMT TR. F. v. Anderson
    • United States
    • U.S. Court of Appeals — Fifth Circuit
    • 12 d5 Agosto d5 1966
    ...decided in 1964. United States v. Anderson, 5 Cir. 1964, 334 F.2d 111, cert. den., 1964, 379 U.S. 879, 85 S.Ct. 147; In re TMT Trailer Ferry, Inc., 1964, 334 F. 2d 118. In the appeal by the United States, we held that the nontax claims of the United States exceeding $900,000 were entitled t......
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