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IN RE HOTEL GOVERNOR CLINTON

No. 257.

96 F.2d 50 (1938)

In re HOTEL GOVERNOR CLINTON, Inc. Appeal of CANTER et al.

Circuit Court of Appeals, Second Circuit.

April 4, 1938.

Attorney(s) appearing for the Case

Frank Aranow, of New York City (Harris Berlack and Charles S. Corben, both of New York City, of counsel), for appellants.

Kadel, Sheils & Weiss and Kadel, Van Kirk & Trencher, all of New York City (John Kadel and Nicholas R. Jones, both of New York City, of counsel), for Committee as appellees and Governor Clinton Co., Inc.

Before MANTON, L. HAND, and AUGUSTUS N. HAND, Circuit Judges.

MANTON, Circuit Judge.

The debtor owned the Hotel Governor Clinton, the erection of which was finished in 1929 from the proceeds of an issue of $6,500,000 mortgage bonds composed of $5,000,000 Series A constituting a prior lien and $1,500,000 Series B which constituted a subordinate and junior lien. In addition thereto, it owed accrued interest since 1931; $1,000,000 to general creditors, and $800,000 in real estate taxes.

August 31, 1929, the debtor leased...

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