Page:United States Statutes at Large Volume 48 Part 1.djvu/939

 73d C ONGRESS. SESS. II. CH. 424. JUNE 7, 1934 . 913 as the court has with respect to such other debtor. Three or more iPetition ba y ° biank- credit ors w ho ha ve pro vable claim s aga inst any c orpora tion which ruptcy amount in the aggregate, in excess of the value of securities held by them, if any, to $1,000 or over may, if such corporation has not filed a petition or answer under this section, file with the court in which such corporation might file a petition under this section, a petition stating that such corporation is insolvent or unable to meet its debt s as the y mature and, if a prior proceedi ng in ba nkruptcy or equity receivership is not pending, that it has committed an act of bankruptcy within four months, that such creditors propose that it shall ef fect a r eorganiz ation ; and s uch c orpor ation shall, wit hin t1 Answer of co rpora- ten days after the service of a copy of such petition upon it, answer such pet ition. If such answer shal l adm it (a) the juris dictio n of gaO rderafcurti f a dl le- the court, and (b) the material allegations of the petition, the court shall enter an order approving the petition as properly filed under this section if satisfied that it complies with this section and has been filed in good faith, or dismiss it if not so satisfied. If such answer If answer denies. shall deny any material allegation of the petition, the judge shall determine summarily the issues presented by the pleadings, without i5 De ster mina tion of the intervention of a jury, and if the material allegations of th e peti- tion are sustain ed by th e proofs and the court is satisfi ed that the petition complie s with t his sect ion and has been filed in good fa ith it shall approve the petition ; otherwise the court shall dismiss the petition ; and if any such petition shall be so approved, the pro- ceedings thereon shall continue with like effect as if the corporation Dismi ssal not to co n- had itself filed a petition or answer under this section. In ca se any stitute act of bank- such p etiti on or answe r or procee dings shal l be dismis sed i n the manner provided in this subdivision (a) or in subdivision (c), clause (8), of this section, the same shall not constitute an act of bank- ruptcy or an admission of insolvency or be admissible in evidence, without the cons ent of t he debto r, in an y proceed ings the n or the re- after pending or commenced under this Act or in any Federal or State co urt. If three or mo re creditors who have provable claims Pro cee din gs byc red i- toy s controverting which amount in the aggregate in excess of the value of securities statements in petition held by them, if any, to $1,000 or over, or if stockholders holding 5 or answer. per centum in number of all shares of stock of any class of the debtor outstanding shall, prior to the hearing provided for in subdivision (c ), c la u se ( 1), of this section app ear and controve rt the facts all eged in the petition or answer, the judge shall determine as soon as may be the issues presented by the pleadings, without the intervention of a jury, and unless the material allegations of the petition or answer are sustained by the proofs, the proceedings shall be dismissed. » (b) A plan of reorganization within the meaning of this section ti Plan of reorganiza- on . (1) s hall includ e pro visio ns mod ifyin g or alteri ng th e rig hts of Sc ghts of cr edit ors. creditors generally, or of any class of them, secured or unsecured, either through the issuance of new securities of any character or oth erw ise ; (2) may in cl ude provisions modifying or altering the Of stockholders. rights of stockholders generally, or of any class of them, either through the issuance of new securities of any character or otherwise (3) shall provide for the payment in cash of all costs of adminis- Payments tration and other allowances made by the court except that compen- adminis- tration costs, allow- sation or reimbursement provided for in subdivision (c), clause (9), of this section, may be paid in securities provided for in the plan if those entitled thereto will accept such payment and the court finds such compensation reasonable ; (4) shall provide in respect of each Stockholders equity, class of stockholders, of which less than a majority shall accept such protection of. plan ( unles s the judge shal l dete rmine eith er th at the debt or is insolvent, or that the interest of such class of stockholders will not SG637 °-34	58
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