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Bankruptcy - Corporate Reorganization - Plan - Adequate Protection Of Claims - Due Process, Erwin S. Simon

Michigan Law Review

In proceedings for reorganization under Section 77B of the Bankruptcy Act, the debtor held real property valued at $245,025, while outstanding against the property there were first mortgage bonds of $445,000, second mortgage notes for $40,250 and a third mortgage note for $27,000. The court confirmed a plan which made no provision for junior lienors or stockholders, and to which they had not given their consent. On certiorari, granted by the Supreme Court, it was held, that since there was no equity in the property above the first mortgage, the claims of the junior lienors and stockholders had no …