In Re Thc Financial Corp.

679 F.2d 784 Bankr. L. Rep. P 69,085 In re THC FINANCIAL CORP., Debtor. FALCON CAPITAL CORPORATION SHAREHOLDERS, Plaintiffs-Appellants, v. J. Carl OSBORNE, Trustee in Reorganization for THC Financial Corp., Defendant-Appellee. No. 80-4386. United States Court of Appeals, Ninth Circuit. Argued and Submitted Jan. 14, 1982. Decided June 14, 1982. Jayson Burton Lumish, Rifkind & Sterling, Inc., Beverly Hills, Cal., for plaintiffs-appellants. James J. Feder, Beverly Hills, Cal., for defendant-appellee. Appeal from the United States District Court for the District of Hawaii. Before BROWNING, SKOPIL, and NORRIS, Circuit Judges. NORRIS, Circuit Judge: 1 Appellants, claimants in the reorganization proceedings of THC Financial Corporation (THCF), seek parity with general unsecured creditors of THCF. The district court, sitting as a reorganization court under the former Bankruptcy Act ( 11 U.S.C. §§ 501-676 (1976) (repealed 1978)), granted summary judgment for THCF's Trustee in Reorganization, subordinating appellants' claim on the ground that it is equitably inferior to the claims of THCF's general unsecured creditors. We affirm. I. 2 Appellants are shareholders of The Hawaii…