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FIRST NAT. BK. OF HOLLYWOOD v. AM. FOAM RUBBER CORP.

No. 38, Docket 75-7051.

530 F.2d 450 (1976)

FIRST NATIONAL BANK OF HOLLYWOOD et al., Plaintiffs-Appellees, v. AMERICAN FOAM RUBBER CORP. and milton R. Ackman, As Trustee of American Foam Rubber Corp., Bankrupt, Defendants, Marie Louise DeMontmollin et al., Defendants-Appellants.

United States Court of Appeals, Second Circuit.

Decided February 5, 1976.

Attorney(s) appearing for the Case

David Sive, New York City (Winer, Neuburger & Sive, New York City, on the brief), for defendants-appellants.

Jacob E. Heller, New York City (Joseph Heller and Jacob E. Heller, New York City, on the brief), for plaintiffs-appellees.

Before LUMBARD, MULLIGAN and VAN GRAAFEILAND, Circuit Judges.

VAN GRAAFEILAND, Circuit Judge:

This is an appeal from a judgment in favor of the executors of one corporate creditor against another corporate creditor whose right to receive payment was made subordinate to that of plaintiffs' testate. Two questions are presented:

1. Did the subordinated creditor have the right to discharge an unmatured subordinated indebtedness without the consent of the senior creditor? 2. Was there payment of a matured, subordinated...

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