In re Condor Pictures, Inc.

This proceeding began with the filing of an involuntary petition against the *175 debtor by petitioning creditors represented by Paul J. Ziegler, on November 23, 1937. Clinton E. Miller was appointed receiver in the matter four days thereafter. On December 2, 1937, thereafter certain creditors represented by Walter C. Durst filed an involuntary petition under Section 77B of the Bankruptcy Act, 11 U.S.C.A. § 207 . On the same day an answer was filed by the corporation consenting to reorganization, and Clinton E. Miller, the acting receiver under the involuntary petition, was made trustee under the 77B proceeding. Mr. Miller was later made permanent trustee. On December 31 the formation of an unsecured creditors’ committee was approved by the Court, and Felix M. Cunningham designated as its counsel. Thereafter extended proceedings were had for the settlement of the business of the corporation, being principally the adjustment of claims, carried on mainly, if not exclusively, by the Trustee on the one hand and the adverse party, whoever it might be, on the other.

The affairs of the debtor corporation were found in great confusion, its property scattered, its books and records…