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MATTER OF MULTIPONICS, INC.

No. 77-2534.

622 F.2d 709 (1980)

In the Matter of MULTIPONICS, INCORPORATED, Bankrupt. MACHINERY RENTAL, INC. and Carl Biehl, Appellants, v. William W. HERPEL, Trustee, et al., Appellees.

United States Court of Appeals, Fifth Circuit.

July 16, 1980.

Attorney(s) appearing for the Case

George W. Pigman, New Orleans, La., Thad Grundy, Houston, Tex., for appellants.

Peter J. Butler, New Orleans, La., for Herpel.

William M. Meyers, New Orleans, La., George J. Wade, New York City, Stephen Victory, New Orleans, La., Mark Zeichner, New York City, for Citibank, N. A.

Laszlo Kormendi, New York City, amicus curiae, for appellee.

Before BROWN, TJOFLAT and GARZA, Circuit Judges.

JOHN R. BROWN, Circuit Judge:

Today we conclude, or at least hope we do, a complex Chapter X reorganization involving Multiponics, Inc. The bankruptcy has engendered lengthy proceedings, sizeable records, and long hours by the parties, their counsel and the federal courts, culminating in three separate appeals. Here, in Multiponics I, we affirm the equitable subordination of a director's claims but reverse the subordination...

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