H. M. Gerson, Receiver of the Estate of Bell Lumber Company, Debtor v. Booth Lumber Company, a Corporation

.Á petition for arrangement was filed October 23, 1952, by Beil Lumber Company, hereafter referred to as Bell. The cause was referred and a Receiver, who chose to continue the business on a limited scale, was named. After considerable difficulty in arriving at a satisfactory composition an Amended Third Modified Plan of Arrangement was filed with the Referee in Bankruptcy March 10, 1953, and with the United States District Court March 16, 1953. Concurrently with the filing Bell deposited $5,000 to insure its compliance with the Plan if it were accepted by the creditors.

The situation as to the two items in controversy here, at the date of filing this Plan, was as follows:

(1) Before the arrangement was filed Associated Molding Company, hereafter known as Associated, had a lien in the sum of $2,204.63 on certain lumber belonging to Bell for services performed thereon. In consideration of the release of the lumber Receiver agreed to pay for this lumber as soon as it was financially possible. He paid $500 on December 26, 1952. There was a balance of $1,704.63 still due to Associated for such lumber on March 10, 1953.

(2) On October 31, 1952, Bell had an asset, in the form of a…