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IN RE GENERAL STEEL TANK COMPANY, INC.

No. 72-2279.

478 F.2d 294 (1973)

In the Matter of GENERAL STEEL TANK COMPANY, INC., Bankrupt. MERRITT-HOLLAND WELDING SUPLIES, INC., et al., Appellants, v. GENERAL STEEL TANK COMPANY, INC., Appellee.

United States Court of Appeals, Fourth Circuit.

Decided May 4, 1973.

Attorney(s) appearing for the Case

L. Patten Mason, Beaufort, N. C., Ellis L. Aycock, Wilmington, N. C., and John A. Mraz, Charlotte, N. C. (Wheatly & Mason, Beaufort, N. C., Stevens, Mc-Ghee, Aycock, Morgan & Lennon, Wilmington, N. C., and Mraz, Aycock & Casstevens, Charlotte, N. C., on brief), for appellants.

Hubert Humphrey, Greensboro, N. C. (McLendon, Brim, Brooks, Pierce & Daniels, Greensboro, N. C., on brief), for General Steel Tank Co., Inc.

Larry B. Sitton, Greensboro, N. C. (Smith, Moore, Smith, Schell & Hunter, Greensboro, N. C., on brief), for Fidelity and Deposit Co. of Md.

Before HAYNSWORTH, Chief Judge, BUTZNER, Circuit Judge, and BRYAN, District Judge.

BUTZNER, Circuit Judge:

This appeal concerns the right of attaching creditors to seek recovery against an unindemnified surety on bonds given to release an insolvent debtor's property that had been attached within four months before the filing of an arrangement under Chapter XI of the Bankruptcy Act.1 The district court, affirming the referee, held that § 67(a) of the Act rendered the bonds null and void, and it restrained the attaching...

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