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IN RE BECK INDUSTRIES, INC.

No. 71 B. 523.

348 F.Supp. 367 (1972)

In the Matter of BECK INDUSTRIES, INC., Debtor.

United States District Court, S. D. New York.

September 26, 1972.

Attorney(s) appearing for the Case

Shea, Gould, Clemenko & Kramer, by Martin I. Shelton and Herman Bursky, New York City, for trustees of debtor Beck Industries.

Winer, Neuburger & Sive, by David Sive, New York City, and Gordon, Feinblatt & Rothman, by Donald Rothman, Baltimore, Md., for respondents.

Milbank, Tweed, Hadley & McCloy, by Samuel Ballin, New York City, for Chase Manhattan Bank, N. A.

Maurice L. Held, for Securities and Exchange Commission.

MEMORANDUM

CANNELLA, District Judge.

The referee's order enjoining the respondents from proceeding with an action pending in Maryland, in which the respondents are plaintiffs and Webster Clothes, Inc., a wholly owned subsidiary of the debtor, is defendant, is affirmed.

In 1969 the debtor entered into negotiations with the stockholders of Webster Clothes, Inc. [hereinafter Webster (Md.)] for the purpose of acquiring the stock of that company. In order...

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