CITIBANK, N.A. v. BAER

Nos. 77-1969, 77-1971.

651 F.2d 1341 (1980)

CITIBANK, N.A., as Indenture Trustee; and United Bank of Denver, N.A., as Indenture Trustee, Appellants, v. Charles A. BAER, Trustee for King Resources Company and International Resources Limited, et al., Appellees.

United States Court of Appeals, Tenth Circuit.

Decided June 9, 1980.


Attorney(s) appearing for the Case

John E. Hoffman, Jr. of Shearman & Sterling, New York City (Stephen F. Ellman, of Shearman & Sterling, New York City, and Thomas J. Kerwin, Richard W. Breithaupt and David R. DeMuro of Hindry & Meyer, Denver, Colo., with him, on brief), for appellant Citibank, N.A., as Indenture Trustee.

Thomas S. Nichols, Denver, Colo. (Robert L. Shanstrom and A. Bruce Campbell, Denver, Colo., with him on brief), of Davis, Graham & Stubbs, Denver, Colo., for appellant United Bank of Denver, N.A., as Indenture Trustee.

David Ferber, Securities and Exchange Commission, Washington, D. C. (James E. Eichstaedt, Washington, D. C., and Anthony V. Ponzio, Securities and Exchange Commission, Chicago, Ill., with him on brief), for appellant Securities and Exchange Commission.

Robert J. Kapelke, Denver, Colo. (John S. Pfeiffer and Stephen Klein, Denver, Colo., with him, on brief), for appellee Charles A. Baer, Trustee of King Resources Company and International Resources Limited.

Roger Goldburg of Weinshienk, Miller, Goldburg & Borus, Denver, Colo., for appellees First Jersey National Bank, European-American Bank & Trust Company, The Federal Deposit Insurance Corporation (as liquidators of The Franklin National Bank) and Mercantile Bank and Trust Company, Limited.

Daniel S. Greenfeld, New York City (Michael L. Hirschfeld, New York City, with him, on brief) of Marshall, Bratter, Greene, Allison & Tucker, New York City (Roger L. Simon and Nancy D. Miller, of Sterling, Simon & Rubner, Denver, Colo., with him, on brief), for appellee Texas International Company.

Before HOLLOWAY, BARRETT and McKAY, Circuit Judges.


McKAY, Circuit Judge.

This is an appeal from an order of the district court confirming a plan of reorganization under Chapter X of the now-superseded Bankruptcy Act, 11 U.S.C. § 501 et seq. (1976).

An involuntary petition for reorganization of the debtor, King Resources Company, was filed on August 14, 1971. At that time the debtor had outstanding approximately $40 million worth of debentures which were specifically subordinated to "senior debt...

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