Sampsell

On April 25, 1947, the Bridgford Company, hereafter called debtor, of which appellee Bridgford was president, a director, and principal stockholder, filed a voluntary petition for an arrangement under Chapter XI of the National Bankruptcy Act, 52 Stat. 905 , 906, 11 U.S.. C.A. § 701 et seq.

The plan of arrangement, which provided for the debtor remaining in possession of its assets, was confirmed by the referee, who on November 6, 1947,. appointed R. H. Hadley as general manager of the debtor to manage and conduct its affairs.

Thereafter, the referee authorized the-debtor to issue certificates of indebtedness to raise working capital and to pay such priority claims and expenses of administration as the court allowed. Each-certificate was to be in the amount of $5,000.00, bear interest at 5 per cent perannum, and become due one year after date of issue. These certificates were to have priority over all existing obligations except valid liens upon the assets of the-debtor and expenses of administration.

On February 2,1948, R. H. Hadley purchased six certificates for $30,000.00.

*183 On November 26, 1948, the court appointed Bridgford manager of the debtor, and two months later…