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IN RE J. R. NIEVES & CO.

No. 71-1087.

446 F.2d 188 (1971)

In the Matter of J. R. NIEVES & CO., Inc., Debtor-Appellant.

United States Court of Appeals, First Circuit.

As Amended on Denial of Rehearing July 27, 1971.

Attorney(s) appearing for the Case

Wallace Gonzalez-Oliver, Robert M. Sweeting, and Gonzalez, Jr., Gonzalez-Oliver, Blanco-Lugo & Moran, San Juan, P.R., on brief for appellant.

Edward M. Borges, Antonio Gonzalez Geigel, and O'Neill & Borges, San Juan, P. R., on brief for appellees.

Before McENTEE and COFFIN, Circuit Judges, and BOWNES, District Judge.

McENTEE, Circuit Judge.

In this case, the debtor filed a petition for an arrangement under Chapter XI of the Bankruptcy Act and was allowed by the referee to remain in possession and act as its own trustee. 11 U.S. C. § 742; see In re Chesterfield Developers, Inc., 285 F.Supp. 689 (S.D.N.Y. 1968). The debtor had bought inventory from two creditors on open account and was in possession of the inventory on the date of...

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