Mason v. Merced Irr. Dist.

This is an appeal from the final decree in a proceeding under Chapter 9 of the Bankruptcy Act, 11 U.S.C.A. §§ 401 — 404, relating to the composition of indebtedness of local taxing agencies.

On February 21, 1939, the district court entered an interlocutory decree confirming the plan of composition proposed by the Merced District. There was an appeal by the present appellant and other dissenting bondholders, resulting in an affirmance, West Coast Life Insurance Company et al. v. Merced Irrigation District, 9 Cir., 114 F.2d 654 . Certiorari was denied January 6, 1941, 311 U.S. 718 , 61 S.Ct. 441 , 85 L.Ed. 467 . Thereafter the district deposited with the disbursing agent the sums necessary to pay the holders of outstanding bonds — other than those purchased by the Reconstruction Finance Corporation — on the basis of the approved plan. A final decree and order approving the report and account of the disbursing agent followed. The court found that the necessary sum had been set aside for dissenting bondholders and that all others had surrendered their bonds at the composition rate; and that the district had therefore, in the time and manner prescribed by the interlocutory decree,…