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GENERAL STORES CORPORATION v. SHLENSKY

No. 261, Docket 23557.

222 F.2d 234 (1955)

GENERAL STORES CORPORATION, Debtor-Appellant, v. Max SHLENSKY and Securities and Exchange Commission, Appellees.

United States Court of Appeals Second Circuit.

Decided April 14, 1955.

Attorney(s) appearing for the Case

Melvin Liebowitz, New York City (Aaron Rosen, Frederic P. Houston, and Otterbourg, Steindler, Houston & Rosen, New York City, on the brief), for debtor appellant.

A. Alan Reich, New York City (Reich, Peller, Guadagno & Caine and Howard Shugerman, New York City, on the brief), for appellee Max Shlensky.

William H. Timbers, Gen. Counsel, Securities and Exchange Commission, Washington, D. C. (David Ferber, Sp. Counsel, Washington, D. C., and Richard V. Bandler and Ezra Weiss, Attys., Securities and Exchange Commission, New York City, on the brief), for appellee Securities and Exchange Commission.

Max Goldweber, Jamaica, N. Y. (L. J. Weinshenker and Weinshenker & Kenner, New York City, on the brief), for wage claimants.

Leon Singer, New York City (Samuel Blumberg and Blumberg, Singer, Heppen & Blumenthal, New York City, on the brief), for creditors of General Stores Corporation.

Before CLARK, Chief Judge, FRANK, Circuit Judge, and GALSTON, District Judge.

CLARK, Chief Judge.

The debtor, General Stores Corporation, filed a petition under Chapter XI of the Bankruptcy Act, 11 U.S.C. § 722, for an arrangement of the debts owed to its unsecured creditors. According to its plan these creditors were to receive the full face amount of their claims over a five-year period. Max Shlensky, a stockholder, challenged the adequacy of the Chapter XI procedure through a show cause order seeking a transfer to Chapter X pursuant...

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