Lusk Corporation v. Rigg

467 F.2d 220 In the Matter of The LUSK CORPORATION, a Delaware corporation, et al., Debtors. ARIZONA LAND TITLE AND TRUST COMPANY, as Trustee under Trust No. 6736-T, with General Electric Company as Beneficiary, Appellant, v. T. A. RIGG, as Trustee in the reorganization proceedings of The Lusk Corporation, Appellee. No. 71-1542. United States Court of Appeals, Ninth Circuit. Sept. 20, 1972. Rehearing Denied Nov. 8, 1972. E. F. Rucker (argued), Tucson, Ariz., Dale McAllister (argued), Syracuse, N. Y., Edward W. Scruggs, of Lesher & Scruggs, Tucson, Ariz., for appellant. Charles D. McCarty (argued), Tucson, Ariz., for appellee. Before MERRILL, KOELSCH and DUNIWAY, Circuit Judges. PER CURIAM: 1 General Electric contends that its claim is, under the terms of a trust indenture, entitled to the status of "senior indebtedness" to which the claims of debenture holders are subordinated. The District Court held that the compromise agreement between General Electric and the trustee, in relegating General Electric's claim to the status of "unsecured claim," forecloses this contention. 2 In our judgment this was error. "Unsecured claim" could encompass senior indebtedness as well as other…