In re Rialto Properties Co.

This is a proceeding begun under section 77B of the Bankruptcy Act of July 1, 1898, as added June 7,1934 (11 USCA § 207), the amendment being commonly referred ta as Corporation Reorganization Act. The petition was filed on August 10, 1934, by three creditors of the debtor corporation, Rialto Properties Company. The purpose of the proceeding is denominated: “Proceedings for the Reorganization of a corporation under section 77B of the Bankruptcy Act” (see title of petition).

Section 77B (a) of the act (11 USCA § 207 (a) provides that three or more creditors who have provable claims against a corporation which amount in the aggregate, in excess of the value of ‘ securities held by them, if any, to $1,000 or over, may file a petition under this section, stating that such corporation is insolvent or unable to meet its debts as they mature and that it has committed an act of bankruptcy within four months, and may allege that petitioning creditors propose that it shall effect -a reorganization.

The debtor is a real estate corporation with a bonded debt of $740,000. The petitioners are a creditors’ committee, representing the holders of $235,500 worth of the bonds. The bonds are in…