Republic Supply Co. v. Richfield Oil Co.

The plaintiff above named on January 15, 1931, filed its complaint as a creditor of the defendant, alleging in brief that the condition of the affairs of the defendant was such as to threaten great loss to its creditors unless a receiver should be appointed to take charge of the business. It alleged that its petition in that behalf was for the benefit of all creditors and asked that a receiver be forthwith named. The defendant corporation did not oppose the petition but gave its consent that a receiver be appointed. William C. MeDuffie was appointed on said date as such receiver and from thence on has continued so to act.

Security First National Bank of Los Angeles is trustee under a certain indenture made to secure first mortgage bonds issued by the defendant. At the time of the appointment of the receiver there were outstanding of these bonds in amount approximately $24,000,000. Although there was a condition of default as to payments to be made on account of said bonds, the trustee took no action *154 to foreclose the same. Shortly prior to June 6, 1932, J. G-. Rodman, alleging that he was the owner of ten bonds of the defendant in the denomination of $1,000 each, filed his…