Preferred stockholders were "beguiled" into purchasing their stock, and paid, as part of the subscription price, for accrued dividends at the rate of 6 per cent per annum from June 1, 1933, to the date of their respective subscriptions, upon the "virtual promise of refund" on December 1, 1933, the next dividend date. No dividend was declared or paid. Such stockholders seek to file a petition for the reorganization of the corporation under Section 77B of the Bankruptcy Act as "creditors" within the meaning of the word as employed in that section. Held, they are "creditors" within the meaning of the language of the act and may file such a petition. In re Lehrenkrauss Corporation, (D. C. N. Y. 1935) 10 F. Supp. 14.
BANKRUPTCY- PREFERRED STOCKHOLDERS AS CREDITORS FOR ACCRUED DIVIDENDS UNDER SECTION 77B OF THE BANKRUPTCY ACT,
Mich. L. Rev.
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