(DOWNLOAD) "In Re Quaker City Sheet Metal Co." by United States Court of Appeals for the Third Circuit " eBook PDF Kindle ePub Free
eBook details
- Title: In Re Quaker City Sheet Metal Co.
- Author : United States Court of Appeals for the Third Circuit
- Release Date : January 12, 1942
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 63 KB
Description
At the beginning of 1940, Quaker City Sheet Metal Company was in financial difficulties and unable to complete its contracts and meet its payroll for lack of working capital. Between January 19, 1940 and April 5, 1940 the Corn Exchange National Bank and Trust Company made several loans to the company. On April 12, 1940 Edward C. Dearden, Sr. made a loan to the company.Concurrently with each loan and as collateral security for it the company assigned contracts and the accounts receivable arising from the contracts. The assignments were made in Pennsylvania, with the knowledge and consent of a creditors committee which represented most of the general claims against the company. Neither the bank nor Dearden gave notice of the assignments to the parties who owed the accounts receivable. On April 18, 1940 an involuntary petition in bankruptcy was filed against the company and on May 7, 1940 the company was adjudicated a bankrupt. At this time the company was indebted to the bank in the sum of $7,954.51 and to Dearden in the sum of $1,550. The bank filed a proof of claim as a secured creditor, to which the trustee in bankruptcy objected. An issue was framed upon a petition for reclamation filed by Dearden. Both claims were passed upon by the referee in bankruptcy who allowed them as secured claims. The District Court for the Eastern District of Pennsylvania entered a decree affirming the orders of the referee. The trustee in bankruptcy has taken this appeal. The trustee concedes the indebtedness but contends that the assignments are voidable preferences by virtue of subdivisions a and b of section 60 of the Bankruptcy Act, as amended, 11 U.S.C.A. 96, subs. a, b.