Hawaii Corporation v. Goss

694 F.2d 179 In the Matter of The HAWAII CORPORATION, Debtor, Lawrence I. WEISMAN, Stanley S. Goldberg, Sonia Goldberg, Hamilton Associates, Model Associates, Inc., S. Rosenthal & Co., Inc., David Weinberg, William Weinberg, et al., Claimants-Appellants, v. John T. GOSS, Trustee-Appellee. No. 81-4217. United States Court of Appeals, Ninth Circuit. Argued and Submitted Nov. 2, 1982. Decided Dec. 6, 1982. Lawrence I. Weisman, in pro per. Don Jeffrey Gelber, Honolulu, Hawaii, for trustee-appellee. Appeal from the United States District Court for the District of Hawaii. Before CHOY, SNEED and FARRIS, Circuit Judges. SNEED, Circuit Judge: 1 The Hawaii Corporation (THC) is a corporate bankrupt undergoing reorganization pursuant to Chapter X of the Bankruptcy Act of 1898. Appellants are a group of investors who appeal from an order of the district court, sitting in bankruptcy, subordinating certain of the investors' claims against THC. Because we find that subordination was appropriate in this case, we affirm. I. FACTS 2 Appellants' claims against THC's bankruptcy estate arise through a series of transactions involving four separate entities. Prior to 1969, appellants held capital…