Bank of America Nat. Trust & Savings Ass'n v. Western Women's Club

This is a petition by the Bank of America National Trust & Savings Association, a secured creditor of the debtor, Western Women’s Club, a California corporation, for an allowance of an appeal by this court from an order of the District Court entered in reorganization proceedings commenced by the debtor under section 77B of the Bankruptcy Act, as amended ( 11 U.S.C.A. § 207 ). Leave to appeal was sought under section 24b, as amended, 11 U.S.C.A. § 47 (b).

The petition, together with the accompanying assignment of errors and brief, sets forth that the bank holds a first mortgage upon the property of the debtor to secure a principal obligation of $778,531.29. At the time of the debtor’s filing its petition under section 77B the obligation was in default and accrued interest had brought the total obligation to $987,346.47. The value of debtor’s property is materially less than the amount owing to the bank under its first mortgage.

On April 10, 1.937, the debtor filed its petition for reorganization under' section 77B. The petition was approved as properly filed and all proceedings against the debtor were stayed. Subsequently the re *191 straining order was modified to permit the…