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IN RE PHŒNIX HOTEL CO. OF LEXINGTON, KY.

No. 7319.

83 F.2d 724 (1936)

In re PHŒNIX HOTEL CO. OF LEXINGTON, KY. SECURITY TRUST CO. et al. v. BAKER et al.

Circuit Court of Appeals, Sixth Circuit.

May 13, 1936.

Attorney(s) appearing for the Case

J. R. Bush, of Lexington, Ky. (Hunt & Bush, George R. Hunt, Rufus Lisle, A. S. Moore, and D. C. Hunter, all of Lexington, Ky., E. B. Rose, of Beattyville, Ky., and S. S. Carrick, William B. Gess, and Job D. Turner, Jr., all of Lexington, Ky., on the brief), for appellants.

Frank S. Ginocchio and Henry Duncan, both of Lexington, Ky. (Frank S. Ginocchio and Allen, Duncan & Duncan, all of Lexington, Ky., on the brief), for appellees.

Before MOORMAN, HICKS, and SIMONS, Circuit Judges.

SIMONS, Circuit Judge.

In a debtor proceeding for reorganization under sections 77A and 77B of the Bankruptcy Act (11 U.S.C.A. §§ 206, 207), this controversy arose as between preferred stockholders of the debtor corporation who had converted their stock into bonds, and unsecured creditors who had become such prior to the conversion. Decision requires construction of Kentucky corporation law, and more particularly of section 564, which as amended by an act...

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