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IN RE HYGRADE ENVELOPE CORP.

No. 375, Docket 30319.

366 F.2d 584 (1966)

In the Matter of HYGRADE ENVELOPE CORP., Bankrupt. Samuel S. BARANOW, Trustee in Bankruptcy of Hygrade Envelope Corp., Appellant, v. GIBRALTAR FACTORS CORP., Respondent.

United States Court of Appeals Second Circuit.

Decided July 13, 1966.

Modified on Rehearing September 28, 1966.

Attorney(s) appearing for the Case

Abraham L. Popper, New York City (Popper & Popper, New York City), for appellant.

Louis P. Rosenberg, Brooklyn, N. Y., for respondent.

Before LUMBARD, Chief Judge, and MOORE and FRIENDLY, Circuit Judges.

FRIENDLY, Circuit Judge:

Hygrade Envelope Corp. was adjudicated a bankrupt in the District Court for the Eastern District of New York pursuant to an involuntary petition filed January 24, 1963. For many years it had been financed by Gibraltar Factors Corp. under an arrangement by which Gibraltar took as security assignments of its accounts receivable; in November, 1962, Hygrade owed Gibraltar more than $300,000. The key man in Hygrade was its vice president and general...

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