Willard L. Gleeson and Mary F. Gleeson v. Fred E. Carr, Trustee in Bankruptcy of the Estate of Broadcasting Corporation of America, Debtor

This is an appeal taken from orders made in a reorganization proceeding under Chapter X of , the Bankruptcy Act.

The Broadcasting Corporation of America, debtor, hereinafter referred to as BCA, is a California corporation which operated five radio stations in California for some time prior to 1946. The outstanding stock of BCA totals 250 shares owned as follows:

Appellants Willard and Mary Gleeson are husband and wife. In addition to being the sole majority stockholder, Mr. Gleeson is a director, president, and manager of BCA; Mrs. Gleeson i's a director and secretary of BCA. E. W. Laisne is the third director.

In December, 1946, BCA was assigned television Channel 1 by the Federal Communications Commission and began construction. In May, 1947, work was suspended by virtue of an international dispute over Channel 1 and subsequently the Commission withdrew the Channel. In November, 1947, Channel 6 was tentatively assigned to BCA; however, the Commission suspended construction on all new television stations in the United States in March, 1948, and since then BCA has not resumed construction. The significance of attempting to incorporate television within its operations is the…