In the Matter of Lance, Inc., Dba Thunderbird Hotel, Debtors v. Dewco Services, Inc., Creditors

This is an appeal from a final order of the United States District Court for the District of Nevada. The Court’s order affirmed, on review, the findings of fact, conclusions of law and judgment of the Court’s Referee in Bankruptcy. The Referee’s action had granted to the appellee, Dewco, leave to foreclose a certain trust deed. No question is raised in this appeal, with regard to the jurisdiction of the Referee, the District Court, or this Court.

The appellant Lance, Inc. dba Thunderbird Hotel, is a petitioner in a Chapter XI bankruptcy proceeding. On May 1, 1967, Lance purchased the Thunderbird Hotel located in Las Vegas, Nevada, from the appellee Dewco Services, Inc., which is a subsidiary of the Del Webb Corporation, for $13,000,000. In that purchase, Lance paid cash in the amount of $1,150,000, assumed two existing trust deeds, approximating $7,560,000, and executed a third trust deed in the amount of $3,863,407.87, on the property. This appeal is concerned with thé foreclosure by Dewco of that third trust deed.

In October, 1967, Lance was in financial difficulties and obtained from Dew-co a moratorium on the note secured by the third trust deed mentioned above. Under the…