Page:United States Statutes at Large Volume 49 Part 1.djvu/957

 912 74TH CONGRESS. SESS. I. CH. 774. AUGUST 27, 1935. copy of which shall also be filed at the same time with the Com- mission, stating that it is insolvent or unable to meet its debts as they mature, and that it desires to effect a reorganization in connec- tion with, or as a part of the plan of reorganization of such other prCourt r or de r •a.ap- debtor ; and upon the filing of such petition, the judge shall enter an order eith er ap provi ng it as p roper ly fi led u nder this secti on, if satisfied that such petition complies with this section and has been filed in good f aith, or d ismissing it if not so satisfi ed, and th ereupon Jurisdiction. such court, if it approves such petition, shall have the same juris- diction with respect to suc h debtor, its property and its creditors and stockholders, as the court has with respect to such other debtor. Creditors' petition. Creditors of any railroad corporation, having claims aggregating not less than 5 per centum of all the indebtedness of such corpora- tion as shown in the latest annual report which it has filed with the Commission at the time when the petition is filed, may, if such corporation has not filed a petition under this section, file with the court in which such corporation might file a petition under this secti on, a peti tion stati ng that su ch corpora tion is in solvent or unable to meet its debts as they mature and that such creditors have claims aggregating not less than 5 per centum of all such indebtedness of such corporation and propos e that it shall effect a reorganization ; Copies to Com mis- copies of such petition shall be filed at the same time with the Com- sion and corporation. mission and served upon such corporation. Such corporation shall, Answer thereto. within ten days after such service, answer such petition. If such answer shall admit the jurisdiction of the court and the material allegations of the petition, the judge shall enter an order approving the petition as properly filed if satisfied that it complies with this section and has been filed in good faith, or dismissing it, if not so Jud ge to summarily satisfied. If such answer shall deny either the jurisdiction of the determine issues if answ er den ies iur isdic- court or any material allegation of the petition the judge shall sum- tion, etc» marily determine the issues presented by the pleadings without the intervention of a jury and if he shall find that the material allega- tions are sustained by the proofs and that the petition complies with ord er a ppro ving pet i- this section and has been filed in good faith, the judge shall enter tion ; dismissal. an order approving the petition ; otherwise he shall dismiss the peti- Proceedings. tion. If any such petition shall be so approved, the proceedings thereon shall continue with like effect as if the railroad corporation Neither petition nor had itself filed a petition under this section. In case an petition answer an act of bank- rup tcy. shall be dismissed, neither the petition nor the answer o a debtor shall constitute an act of bankruptcy or an admission of insolvency or of inability to meet maturing obligations or be admissible in evid ence, with out t he de btor' s con sent, in a ny pr oceed ings then or thereafter pending or commenced under this Act or in any State or Creditors may con- Feder al co urt. If in any case in which the issues have not alread trovert assertions prior 7 y y to bearin g. been tried under the provisions of this subdivision, any of the creditors shall, prior to the hearing provided for in paragraph (1) of su bsect ion ( c) of this sect ion, appea r and cont rover t the fact s alleged in the petition, 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 are sus- tained by the pro ofs, shall dismiss t he petitio n. Reor g anization plan. (b) A plan of reorganization within the meaning of this section Provisions included. (1) shall include provisions modifying or altering the rights of creditors generally, or of any class of them, secured' or unsecured, either through the issuance of new securities of any character or otherwise ; (2) may include provisions modifying or altering the rights of stockholders generally, or of any class of them, either through the issuance of new securities of any character, or other- wise ; (3) may include, for the purpose of preserving such interests