Chaffee County Fluorspar Corporation v. Athan, 3590.
| Decision Date | 30 August 1948 |
| Docket Number | No. 3590.,3590. |
| Citation | 169 F.2d 448 |
| Parties | CHAFFEE COUNTY FLUORSPAR CORPORATION v. ATHAN et al. |
| Court | U.S. Court of Appeals — Tenth Circuit |
Robert L. McDougal, of Denver, Colo., for appellant.
Anthony F. Zarlengo, of Denver, Colo., and C. E. Tate, of Champaign, Ill., for appellees.
Before PHILLIPS, BRATTON, and MURRAH, Circuit Judges.
On May 3, 1947, the appellant, Chaffee County Fluorspar Corporation, filed in its pending bankruptcy proceedings this petition for an arrangement of its unsecured debts under Chapter XI of the Bankruptcy Act, 52 Stat. 905, 907, § 321, Title 11 U.S. C.A. §§ 701, 721. The accompanying schedule, as amended May 23, 1947, listed unpaid taxes in the sum of $3,915.80, secured claims in the aggregate of $55,538.43, and unsecured claims in the amount of $69,137.24, or total liabilities of $128,591.47. The only assets of the corporation listed were a note in the amount of $140,000, secured by a deed of trust on certain mining property located in Chaffee County, Colorado, formerly owned by the Company, and $8 on deposit in the bank. The proposed arrangement contemplated the payment of 12½% of the allowed claims within 90 days after the acceptance of the plan by 50% or more of the creditors and approval by the court, and 12½% each 90 days thereafter until the entire indebtedness of the corporation was satisfied. When the petition under Chapter XI was filed, the appellant had already been adjudged a bankrupt, and the referee had stayed a sheriff's deed to a judgment creditor covering the mining property secured by the $140,000 note.
After analyzing the financial condition of the debtor as shown in the schedule and a report of the receiver, the referee concluded that no plan could be presented which would be fair, equitable and feasible under Chapter XI. He also expressed doubt whether relief could be granted under the broader provisions of Chapter X, or for that matter, whether upon liquidation there would be anything for the unsecured creditors. He accordingly dismissed the arrangement proceedings, revived the ordinary bankruptcy proceedings, and continued the order restraining the effective date of the sheriff's deed, in order that the court and trustee could proceed to liquidate the estate in the ordinary bankruptcy proceedings. The trial court approved the order of the referee, and entered judgment accordingly.
The secured debts listed in the schedule consisted of the judgment for $24,569.84, in satisfaction of which the sheriff had levied and sold the Corporation's mining property, and was prevented from issuing the sheriff's deed by the restraining order of the bankruptcy court; another judgment for $10,740.92 on which a levy had been made; a judgment and levy for $2,227.67; a note and deed of trust for $9,000; a note and deed of trust on which $7,000 was due; and a note and chattel mortgage on the equipment for $5,500, with a balance due of $2,000. The receiver's report disclosed other unsatisfied judgments, obligations and entangling litigation directly affecting the mining property.
It was stated in the amended schedule that the debtor corporation conveyed its mining property and equipment on August 3, 1945...
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IN RE PREMIER SALES COMPANY
...point, the court simply held that the failure of the secured creditor H. H. Potts to accept the proposed arrangement was not fatal to it. In Chaffee the court sustained the dismissal of a petition for an arrangement because it could not be fairly, equitably and feasibly consummated without ......
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...S.Ct. 1044, 84 L.Ed. 1293 (1940); Hallenbeck v. Penn. Mut. Life Ins. Co., 323 F.2d 566, 571 (4th Cir. 1963); Chaffee County Fluorspar Corp. v. Athan, 169 F.2d 448 (10th Cir. 1948); In re Tracy, 194 F.Supp. 293 (N.D.Calif. 1961); In re Herold Radio & Electronics Corp., 191 F.Supp. 780 (S.D.N......
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In re Mozer, 79 B 03189 K.
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