In re Rubicon, Ltd.

IN PROCEEDINGS FOR AN ARRANGEMENT UNDER CHAPTER XII OF THE BANKRUPTCY ACT.

This action is before the court on the petition of Samson Construction Company, Inc. for review of the Referee’s order of April 2, 1971. The facts of the case are essentially as follows.

The Rubicon, Ltd., debtor herein, was engaged in the ownership and operation of real property investments. On December 17, 1969, petitioner Samson Construction Company, filed an action against Rubicon in the Superior Court of California, County of Alameda. On July 2, 1970, Rubicon filed a petition for an arrangement pursuant to the provisions of Chapter XII of the Bankruptcy Act. The Referee then appointed the respondent as trustee and gave to him authority to manage the real estate properties of the debtor including collection of the rents. The trustee was further directed that after payment of current operating costs, he was to make such payments as receipts permitted on various secured obligations against the real properties owned by the debtor.

At a hearing before the Referee on November 24, 1970, the debtor conceded that he was unable to secure financing which would be necessary to any effective plan of arrangement.…