Charles Evans Hughes

“ He found that it was impracticable to determine the value of their bonds except by a public sale, and, in view of the financial condition of the debtor, he deemed a sale of its property to be 'inevitable.' And along with these considerations, the proposal encountered what he described as the almost unanimous opposition of the secured creditors and the refusal of assent by a majority of the general creditors. Where the debtor's plan of reorganization is not confirmed, the District Judge is authorized to dismiss the proceeding. ”

“ The Circuit Court of Appeals affirmed a decree of the District Court dismissing the petition of the debtor, Tennessee Publishing Company, and its plans of reorganization, in a proceeding under section 77B of the Bankruptcy Act (11 U.S.C.A. § 207) . The court held (1) that the debtor's proposal was not a workable one and hence had not been presented in good faith as that phrase was used in the statute ”

“ Three successive plans of reorganization were submitted and opposed. Several hearings were had. It appears that for more than two years prior to this proceeding, the affairs of the debtor had been in charge of a receiver appointed by the District Court upon a creditors' bill. An appraisal of the debtor's property showed assets worth about $295,000. Outstanding bonds, secured by mortgage, were in default and amounted with interest to approximately $900,000. There were unsecured claims of about $300,000. ”