Citations
- 88 F. Supp. 796
Full opinion text
DAVIS, Chief Judge.
The Plan
The plan of reorganization of the Georgia, Florida & Alabama Railroad Company has been approved by the Interstate Commerce Commission and certified to the Court under the provisions of the Bankruptcy Act, Title 11 U.S.C.A. § 205, sub. d.
The Plan having been so certified, the Court has duly given notice to all parties in interest of the time within which they might file with the Court their objections to the plan.
The salient features of the plan are, as follows:
The reorganized company shall have a capitalization of $3,400,000. This new capitalization consists of the following securities: (a) First Mortgage 4}4% income bonds in the amount of $1,225,000; (b) 10,500 shares of 5% preferred stock of the par value of $100 per share; and (c) 11,-250 shares of common stock of no par value but stated at $100 per share.
These new securities and the cash now on hand are to be distributed, as follows: $630,000 in cash, all of the new bonds, all of the new preferred stock, and 8,750 shares of the new common stock are allotted to the holders of the debtor’s first mortgage and refunding bonds. There have been pending before the Court claims of the bondholders for interest on interest, a claim of the Seaboard Air Line Railroad Company in the amount of approximately $329,000, and a claim of the first preferred stockholders based on their stock. These claims will, by orders of the Court to be entered contemporaneously with this opinion, be disallowed. Therefore, under the plan, the remaining 2,500 shares of common stock in the new company will, if the plan should be approved, be distributed pro rata to the holders of the outstanding-first preferred stock. Under the proposed orders of the Court with respect to interest on interest, the claim of the Seaboard Air Line Railroad Company and the claim •of the first preferred stockholders, the plan is to be considered as if it .specifically allotted to the holders of the debtor’s first mortgage and refunding bonds $630,-<000 in cash, all of the bonds of the reorganized company and all of its capital ■stock with the exception of 2,500 shares