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MEADOWS v. BICRODYNE CORP.

No. 84-2219.

785 F.2d 670 (1986)

John F. MEADOWS, et al., and Estate of David J. Peterson, et al., Plaintiffs-Appellants, v. BICRODYNE CORPORATION and Carpenter Technology Corporation, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Decided March 13, 1986.

Designated for Publication March 26, 1986.

Attorney(s) appearing for the Case

Robert W. Rychlik, San Jose, Cal., Lance S. Stryker, El Granada, Cal., for plaintiffs-appellants.

John Anderson, Richard D. Warren, Landels, Ripley & Diamond, San Francisco, Cal., for defendants-appellees.

Before DUNIWAY, TANG, and FLETCHER, Circuit Judges.

DUNIWAY, Circuit Judge:

Bicrodyne became bankrupt and filed for reorganization under Chapter 11 in September, 1970. The plan which was formulated called for conversion of debt into stock. Carpenter, Bicrodyne's principal creditor, received 10.3% of Bicrodyne's voting stock, and, over the following two years, acquired a total of 95% of that stock. On September 15, 1977, Bicrodyne was merged into Carpenter, pursuant to Chapter 11 of the Cal.Corp.Code.

In December...

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