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IN RE NEW HAVEN CLOCK & WATCH COMPANY

No. 158, Docket 24767.

253 F.2d 577 (1958)

Matter of The NEW HAVEN CLOCK & WATCH COMPANY, Debtor. The FIRST NATIONAL BANK OF CHICAGO, Petitioner-Appellee-Appellant, v. Arthur B. O'KEEFE, Jr., Trustee, Appellant, and The United States of America, Appellant.

United States Court of Appeals Second Circuit.

Decided March 28, 1958.

Attorney(s) appearing for the Case

Schwartz & Knight, New Haven, Conn. (J. Stephen Knight, New Haven, Conn., of counsel, and Charles D. Issac, on the brief, New Haven, Conn.), for petitioner-appellee-appellant.

Curtiss K. Thompson, New Haven, Conn., for appellant Arthur B. O'Keefe, Jr., Trustee.

Charles K. Rice, Asst. Atty. Gen., Lee A. Jackson and I. Henry Kutz, Attorneys, Washington, D. C. (Marvin W. Weinstein, Department of Justice, Washington, D. C., Attorney, of counsel), Simon S. Cohen, U. S. Atty., for District of Connecticut, Hartford, Conn., and W. Paul Flynn, Asst. U. S. Atty., New Haven, Conn., for appellant United States of America.

Before MEDINA and MOORE, Circuit Judges, and GALSTON, District Judge.

MEDINA, Circuit Judge.

The New Haven Clock & Watch Company, a debtor which on December 7, 1956 filed a petition for reorganization under Chapter X of the Bankruptcy Act, 11 U.S.C.A. § 501 et seq., had, since 1947, been borrowing large sums of money from The First National Bank of Chicago. This debt was secured by the assignment to the Bank of accounts receivable owing to the Clock Company. The principal issues on this appeal from the order below directing...

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