Equity Funding Corporation of America v. Loeffler

519 F.2d 1274 In the Matter of EQUITY FUNDING CORPORATION OF AMERICA, a Delaware Corporation, Debtor. BACHE & CO. INCORPORATED et al., Objectors-Appellants, v. Robert M. LOEFFLER, Trustee, Appellee. No. 74-3394. United States Court of Appeals, Ninth Circuit. July 21, 1975. Everett B. Clary (argued), Los Angeles, Cal., for objectors-appellants. Marvin Schwartz (argued), New York City, for appellee.OPINION Before WRIGHT and WALLACE, Circuit Judges, and POWELL, * District Judge. EUGENE A. WRIGHT, Circuit Judge: 1 This is an appeal from a district court order in proceedings for the reorganization of Equity Funding Corporation of America (EFCA) pursuant to Chapter X of the Bankruptcy Act. ( 11 U.S.C. § 501 et seq.) The order authorized the Trustee of EFCA to enter into a settlement (Amended Compromise) which arose out of the Illinois Liquidation of EFCA's wholly-owned subsidiary, Equity Funding Life Insurance Company (EFLIC). 2 The appellants appeared below and objected to the Amended Compromise insofar as it established a $2 million fund for the benefit of three classes and two individuals who filed fraud claims in the liquidation proceedings. The fund is to be used to pay…