The Bankruptcy Act, Section 77B (a), provides that creditors with more than a fixed minimum of claims may file a petition proposing a corporate reorganization and stating "that such corporation is insolvent or unable to meet its debts as they mature and, if a prior proceeding in bankruptcy or equity receivership is not pending, that it has committed an act of bankruptcy within four months . . . . " On a petition which alleged no prior proceeding in bankruptcy nor any act of bankruptcy within four months but did allege the appointment of receivers in an action in the state court to foreclose a mortgage upon all of the debtor corporation's property, held, that the petition should be dismissed because this allegation did not show the existence of an equity receivership in the sense intended by the Bankruptcy Act. In re 2168 Broadway Corp., (D. C. N. Y. 1935) 11 F. Supp. 404, affd., (C. C. A. 2d, 1935) 78 F. (2d) 678.
BANKRUPTCY-RECEIVERSHIP AS BASIS FOR ACTION UNDER SECTION 77B,
Mich. L. Rev.
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