Salsbury Motors, Inc. v. United States Goggin v. Salsbury Motors, Inc

The appellants here each appeal from an order and judgment of the above district court which reversed an order of the Referee made in a proceeding growing out of a plan of arrangement and an order confirming the same under Chapter XI of the Bankruptcy Act. The facts of the case are set forth in the opinion of the District Judge in Re Salsbury Motors, D.C.Cal., 104 F.Supp. 482 . As there disclosed, Salsbury Motors, a California corporation, had filed the petition for an arrangement, and an amended plan proposed by it was confirmed. Under that plan and the order confirming it, the assets of the debtor were “vested in and adjudged to be the property of the debt- or corporation, free and clear of all liens, claims and rights of all creditors and persons, and free and clear of all claims of dischargeable and non-dischargeable debts” except the lien of the Bank which advanced $550,000 on the security of those assets, such sum being placed in the hands of the receiver who, as disbursing agent, was to pay creditors’ claims therefrom. The order recited “that this court retains and reserves jurisdiction to determine the amount and validity of all claims of creditors, both secured and…