IN RE GENERAL STORES CORPORATION


164 F.Supp. 130 (1958)

Matter of GENERAL STORES CORPORATION, Debtor.

United States District Court S. D. New York.

June 2, 1958.


Attorney(s) appearing for the Case

Frederick P. Close, White Plains, N. Y., Martin Drazen, New York City, of counsel, for Reorganization Trustee, Charles H. Griffiths.

Paul, Weiss, Rifkind, Wharton & Garrison, New York City, Simon H. Rifkind, New York City, Harry H. Ruskin, Chicago, Ill., John E. Massengale, Stephen Wise Tulin, Pauli Murray, New York City, of counsel, for Secured Creditors and Collateral Trustee.

Louis J. Weinshenker, New York City, Edward A. Gorenstein and Walter Goodman, Chicago, Ill., Associate Counsel, for Creditor, Richard Goodman.

Richard Goodman, Chicago, Ill., pro se.

Netter & Netter, New York City, Edward Rothenberg, of counsel, for Florence Brill, Stockholder.

Townsend & Lewis, New York City, John F. Davidson, of counsel, for Stockholders' Protective Committee.

Richard V. Bandler, Kiva Berke, of counsel, for Securities and Exchange Commission.

White & Case, New York City, Haliburton Fales, 2nd, of counsel, for The Prudential Ins. Co. of America.


LEVET, District Judge.

On May 19, 1954, General Stores Corporation (hereinafter also called the debtor) in Chicago, Illinois, made and delivered its two promissory notes (attached to Secured Creditors' Exhibit F) to the secured creditors, Lewis J. Ruskin and Rexall Drug Company. The notes (originally totalling $2,065,000) provided for interest on principal at the rate of 4% per annum, and further provided that in case of an event of default as defined in the collateral...

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