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IN RE FLORA MIR CANDY CORPORATION

No. 59, Docket 34713.

432 F.2d 1060 (1970)

In the Matter of FLORA MIR CANDY CORPORATION et al., Debtors. FLORA MIR CANDY CORPORATION et al., Debtors-Appellants, v. R. S. DICKSON & Co. et al., creditors of Meadors, Inc., Appellees.

United States Court of Appeals, Second Circuit.

Decided October 28, 1970.

Attorney(s) appearing for the Case

Michael J. Crames, New York City (Levin & Weintraub and Harris Levin, New York City, of counsel), for debtors-appellants.

David L. Freeman, Greenville, S. C. (Wyche, Burgess, Freeman & Parham, P.A., Greenville, S. C., of counsel), for appellees.

Before DANAHER, FRIENDLY and HAYS, Circuit Judges.

FRIENDLY, Circuit Judge:

Meadors, Inc., was organized late in 1961 to manufacture and sell candy in Greenville, S. C. In addition to stock, it issued $330,000 of 7% convertible subordinated debentures. In 1963 the stockholders sold all their shares to United Biscuit Company of America, later Keebler Company. The debenture holders gave up their conversion privilege as part of the transaction. Meadors' sales force was dismantled, and its output was sold under the Keebler...

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