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- Bankruptcy Act (5)
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Articles 1 - 11 of 11
Full-Text Articles in Law
Bankruptcy - Corporate Reorganization - Effect Of Release Of Collateral Obligor On Dissenting Creditors, Edward D. Ransom
Bankruptcy - Corporate Reorganization - Effect Of Release Of Collateral Obligor On Dissenting Creditors, Edward D. Ransom
Michigan Law Review
The federal district court confirmed a plan of reorganization of debtor corporation, under section 77B of the Bankruptcy Act, which expressly released defendant from liability as guarantor of bonds of the corporation and provided for cancellation of the bonds and substitution of new certificates of stock. The plaintiff, a bondholder, made no objection when the plan was submitted to the court; objection by other bondholders was overruled. The plaintiff brought suit in municipal court on the defendant's guaranty. Defendant pleaded the confirmation of the plan by the district court as res adjudicata. The trial court denied the plea and entered …
Corporations - Priority Between Parent Corporation And Preferred Stockholders Of Bankrupt Subsidiary, Erwin S. Simon
Corporations - Priority Between Parent Corporation And Preferred Stockholders Of Bankrupt Subsidiary, Erwin S. Simon
Michigan Law Review
It is well settled that when an undercapitalized subsidiary corporation is bankrupt, the claims for money loaned by the parent corporation which has dominated the subsidiary will be subordinated to the claims of other creditors. An analogous problem, which has seldom, if ever, been directly passed upon, is the priority between the claims of the nonvoting preferred stockholders of the subsidiary and those of the dominating corporation which owns all the common voting stock of the subsidiary. In spite of the fact that intercorporate loans are a common and approved method of financing subsidiaries, the question has heretofore been relatively …
Executors And Administrators -- Quasi-Contract Liability Of Decedent's Estate -- Administrative Expenses As A Prior Charge On The Estate, Ralph Winkler
Michigan Law Review
After the supply of feed for the decedent's livestock had been depleted and before the appointment of an administrator, the plaintiff furnished some grain at the request of the decedent's daughter and son-in-law, no other parties attempting to assist in any way. It was understood that the plaintiff would look to the estate for payment. In an action of contract against the administrator in his representative capacity for the value of the grain the court held that the plaintiff had a valid claim in quasi-contract against the estate, basing the decision upon "broad considerations of policy." Since the estate was …
Insolvency-The Co-Debtor As A Factor In Distribution, Fred T. Hanson
Insolvency-The Co-Debtor As A Factor In Distribution, Fred T. Hanson
Michigan Law Review
The problems in distribution peculiar to claims upon which another is liable with the insolvent have received little critical analysis in judicial decisions. This is largely because the chancery rule, governing the treatment of lienors, is widely accepted as the solution in every instance where one creditor has an exclusive resource from which he may obtain payment wholly or in part.
Constitutional Law - Due Process And The Frazier-Lemke Acts, Henry Earnest Halladay
Constitutional Law - Due Process And The Frazier-Lemke Acts, Henry Earnest Halladay
Michigan Law Review
Recent decisions involving the constitutional validity of the first and second Frazier-Lemke Acts have again raised the old spectre of due process. The questions involved related to the power of the Federal Government to regulate the rights, duties, and liabilities existent between debtors and creditors in the field of farm mortgages under the bankruptcy power. To forego an extended discussion of the history of due process as a limitation on governmental fiat, let it suffice to say that the concept, which began with Magna Carta ran through early definitions in the United States limiting it to procedural matters and attempts …
Suretyship-Effect Of Death Of Surety On Rights Of Creditor, Jacob L. Keidan
Suretyship-Effect Of Death Of Surety On Rights Of Creditor, Jacob L. Keidan
Michigan Law Review
In a suit on a bond filed in accordance with statutory requirements by a depository designated by a court of bankruptcy, it was pleaded in defense that the surety died before any deposits were received by the designated bank. The circuit court of appeals held for the defendant, ruling that the bond was only a multiple offer and lapsed with the death of the surety. The Supreme Court reversed this decision on the ground that the bond was a single offer, and the designation of the bank as an official depository constituted an acceptance thereof. United States for the use …
Bankruptcy - Corporate Reorganization - Plan - Adequate Protection Of Claims - Due Process, Erwin S. Simon
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 …
Banks And Banking - Collections - Trust Or Debt, Michigan Law Review
Banks And Banking - Collections - Trust Or Debt, Michigan Law Review
Michigan Law Review
A certificate of deposit issued by A bank and owned by plaintiff was presented for collection in a routine clearance transaction between defendant bank and A bank. A bank paid for the several items presented with other items and a draft. The draft was dishonored. After both banks closed, defendant bank collected the amount of the draft from A bank as a preferred claim. Plaintiff seeks full payment of the certificate of deposit. Held, payment terminated the agency for collection and gave rise to a debtor-creditor relation, and, for this purpose, payment by draft was equivalent to any other …
Bankruptcy - Corporate Reorganization Plan - Fairness And Feasibility, Erwin S. Simon
Bankruptcy - Corporate Reorganization Plan - Fairness And Feasibility, Erwin S. Simon
Michigan Law Review
The corporation, having assets of $295,000 and liabilities of $1,200,000, petitioned for reorganization under Section 77B of the Bankruptcy Act and presented a plan. The district court's dismissal of the debtor's petition was affirmed in the circuit court of appeals on the grounds that the plan offered was incomprehensible, that the appraisal required by the plan was unjust since the value and validity of the bonds had been found in the equity receivership, and that subsection (b)(5) of 77B was unconstitutional, the attempt to bind non-assenting creditors being a denial of due process. Certiorari was granted by the Supreme Court. …
Collateral Liabilities Under Section 77b, Homer Kripke
Collateral Liabilities Under Section 77b, Homer Kripke
Michigan Law Review
The passage of section 77B of the Bankruptcy Act in 1934 suggested to some lawyers the possibility of using the section as a means of modifying or eliminating the responsibility of persons collaterally liable on obligations for which the corporation to be reorganized or its property was also responsible. The question arose in two common types of situations: (1) guaranties of payment of dividends on capital stock; (2) liability for payment of the bonds or other indebtedness of corporations. In either of these situations, can the liability of persons other than the corporaticm be discharged or modified by reorganization of …
Section 77b, The Chandler Bill And Other Proposed Revisions, John Gerdes
Section 77b, The Chandler Bill And Other Proposed Revisions, John Gerdes
Michigan Law Review
Section 77B of the Bankruptcy Act has been in effect since June 7, 1934. Its novelty and recognized importance in the field of corporate reorganizations have aroused great interest and wide discussion. The attention which it has received has brought to the fore criticisms of many aspects of the statute.