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IN RE PRUDENCE BONDS CORPORATION

No. 26545.

57 F.Supp. 839 (1944)

In re PRUDENCE BONDS CORPORATION (two cases).

District Court, E. D. New York.

March 9, 1944.

Attorney(s) appearing for the Case

George C. Wildermuth, of Brooklyn, N. Y. (Charles H. Kelby, of New York City, of counsel), for objectors Charles H. Kelby and Clifford S. Kelsey.

Maclay, Lyeth & Williams, of New York City, for Bank of Manhattan Co.

Charles M. McCarty, of New York City, for Prudence Bonds Corporation.

Irving L. Schanzer, of New York City, for Prudence Realization Corporation.

Samuel Silbiger, of Brooklyn, N. Y., for George E. Eddy.

Joseph Nemerov and Henry Schwartz, both of New York City, for Bondholders.

INCH, District Judge.

As far back as June, 1939, the right of bondholders in a reorganization to compel a restoration of the res to a trust fund was established as differentiated from suits against the trustee of that fund for damages and similar actions. Central Hanover Bank & Trust Co. v. President and Directors of Manhattan Co., 2 Cir., 105 F.2d 130. This has been followed on other appeals. Manufacturers Trust Co. v. Kelby...

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