In Re Germain

Before us is the petition of Bianco Packing Company, Inc., to be referred to as “Bianco”, or “petitioner on review”, to review an Order of the Referee dated February 14, 1956, discharging property of the debtors from certain lien claimed by it, and determining the validity and extent of its claim.

The matter arose in a proceeding for arrangement under Chapter XI of the Bankruptcy Act, 11 U.S.C.A. § 701 et seq., instituted on May 5, 1955, by Peter W. Germain, a farmer. His wife, Ruth A. Germain, filed a similar petition on June 1, 1955. An Order of General Reference was made on May 7, 1955. On June 29,1955, an Order was entered plac ing the debtors in charge of the business and authorizing them to continue in possession of their property and to operate the business. On the same day, an Order was entered authorizing the debtors in possession to sell their perishable crops and to account for the proceeds, subject to final determination of the lien rights of Bianco.

On July 1, 1955, the debtors filed a joint petition for stay of proceedings to enforce liens, to determine the claims against the debtors and asking for an Order to Show Cause why Bianco should not be enjoined from…