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Sales-Corporate Reorganization Proceedings Under Section 77b-Right Of Conditional Vendors To Reclaim Property

Michigan Law Review

The debtor, a laundry corporation, had filed a petition for reorganization under Section 77B of the Bankruptcy Act. The petition was granted, but prior to the approval by the court of a reorganization plan several conditional vendors (whose sales agreements had been filed according to the requirement of the New York law) moved to retake the articles sold, in accordance with said law relative to conditional sales, the debtor having defaulted in the agreed payments. Held, the conditional vendors were not lienors nor mortgagees, whose interests would have been covered by the reorganization petition; and since the chattels were …