In Re Aqua Hotel Corporation

251 F.2d 138 In re AQUA HOTEL CORPORATION, Bankrupt. AQUA HOTEL CORPORATION; Patricia Springer and John Cashen, Appellants, v. Thomas J. McLAUGHLIN, Trustee in Reorganization, Appellee. (Sydney H. Kaye, Trustee in Bankruptcy, Intervenor, Ralph J. Weiler, Intervenor.) No. 15439. United States Court of Appeals Ninth Circuit. Dec. 17, 1957, Rehearing Denied Jan. 28, 1958. Morris Lavine, Los Angeles, Cal., John A. Porter, John W. Bonner, John H. McNamee, Las Vegas, Nev., for appellants. Milton W. Keefer, Charles L. Garner, Las Vegas, Nev., Craig, Weller & Laugharn, Frank C. Weller, Hubert F. Laugharn, Thomas S. Tobin, Los Angeles, Cal., for appellees. Before FEE, BARNES, and HAMLEY, Circuit Judges. HAMLEY, Circuit Judge. 1 This proceeding was instituted under Chapter X of the Bankruptcy Act, 11 U.S.C.A. 501 et seq., to obtain reorganization of Aqua Hotel Corporation. Following disapproval of two proposed reorganization plans, the court adjudicated the corporation a bankrupt, and converted the proceedings from reorganization to bankruptcy. 2 The corporation and its principal stockholders, John F. Cashen and his former wife, Mrs. Patricia Cashen Springer, president and treasurer,…