Document: 338 U.S. 96 69 S.Ct. 1377 93 L.Ed. 1836 SECURITIES AND EXCHANGE COMMISSIONv.CENTRAL-ILLINOIS CORPORATION et al. STREETER v. CENTRAL-ILLINOIS HOME INS. CO. COMMISSION Nos. 226, 227, 243, 266. Argued Jan. 12, 13, 1949. Decided June 27, [Syllabus from pages 96-98 intentionally omitted] Mr. Roger S. Foster, for Securities & Exchange Commission, washington, D.C. Lawrence R. Condon, New York City, Thomas W. Streeter and others. Francis H. Scheetz, Philadelphia, Pa., Home Ins. Co. Louis Boehm, Lucille White Alfred Berman, Central-Illinois Corp. Justice RUTLEDGE delivered the opinion of Court. 1 The case involves an amended plan filed under § 11(e) Public Utility Holding Company Act 19351 by Engineers Service Company. provided, inter alia, satisfying claims Engineers' preferred stockholders in cash as a preliminary to distributing remaining assets common dissolving company. Broadly, question is whether reviewing plan, correctly applied 'fair equitable' standard determining amounts be paid satisfaction their claims. 2 As will appear, ultimate effect Commission's determination was allow holders three series outstanding cumulative stock receive call (or voluntary liquidation redemption) prices shares, namely, $105 per share, $110 share rather than involuntary preference which, each series, $100 share. Common shareholders oppose allowance price value, insisting that maximum which are entitled $100. 3 In this view District Court and, generally speaking, Appeals have concurred, declining give approved respect Commission. Consequently we confronted not only with issues concerning propriety action applying 11(e), but further its judgment these matters given or Court, either exercised it modified certain respects Appeals. 4 facts subsidiary involved various determinations some complexity must set forth considerable detail appropriate understanding disposition. 5 At time enacted, holding company system dominated consisted 17 utility nonutility companies. Of these, nine were direct subsidiaries eight indirect subsidiaries. Integration proceedings 11(b)(1) instituted 1940. orders issued 1941 1942 Commission directed dispose interests all companies except Virginia Electric Power Gulf States Utilities Company, designated principal if failed elect between States.2 now review had complied divestment extent disposing properties interest Virginia, consisting 99.8 cent company's stock, El Paso stock. securities representing $14,650,000 United Treasury securities. 6 no debts. It equal rank: 143,951 shares $5 annual dividend 183,406 $5.50 65,098 $6 series. has been said, preferences prices. 7 Proceedings before Plan Originally Filed. originally provided retirement payment plus accrued dividends date payment.3 then distributed among stockholders, dissolve.4 8 order insure adequate presentation views board directors authorized one members, Streeter, who primarily interested retain counsel partly at expense. members his family petitioners No. 227. These representatives group institutional investors held Insurance Tradesmens National Bank Trust appeared Commi sion opposition plan. They contended they should preferred. 9 After summarizing issuing prices,5 history,6 market history7 preferreds, analyzed coverage earnings represented 17.5 consolidated capitalization surplus system. That junior 66.2 public, senior 16.3 cent, total surplus. 10 system's average fixed charges last five years prior submission 1.4 times. For 1.5 11 Certain expert testimony going-concern investment value adduced Dr. Ralph E. Badger witness on behalf stockholders. He made detailed analysis compared relevant information other comparable securities.8 concluded that, apart provisions basis quality yield, valued $108.70, $119.57, $130.33 respectively, because redemption privilege, 'the present values price, slight premium account required call.' fair preferred, were: series—$106.25; series—$111.38; series—$111.50. No rebuttal introduced, there serious challenge Badger's conclusions exceeded 12 Donald C. Barnes, president, testified impact taking into prices, i.e., 'what willing buyer would pay what seller take today's such securities,' somewhat above Barnes spoke several factors, viz., possibilities continued inflation, depression, government competition, adverse changes regulatory policy, developments atomic energy, 'common utilities industry generally,' might future Both witnesses agreed, however, stated brief worth going concern Act, prevailing yields securities' excess also called 11. 13 first dissolution (was) 'necessary' standards Act.' However, since liquidation, Otis 323 624, 65 483, 89 511, 'does mature stockholders' claims' so-called provision charter operative. ruled 'that Congress did intend exercise power simplify rights, created without regard possibility simplification structure, otherwise arise or, involuntari y, through creditors.' page 638, 490. 14 announcing reorganization 'a security holder receive, priority, available claim, equitable equivalent rights surrendered,' considered affected 'such rate well preferences,' financial condition 'with particular asset preferred.' On undisputed found least respective Since operated ceilings providing means, whereby can retired price,'9 attempt determine any exceed provision. 15 dividends, therefore refused approve preferences. 16 Turning attention accumulation large idle cash,10 elimination having requirements 'highly beneficial common.' Moreover, implementing adjustment compliance brought closer when begin receiving dividends. amount unfair, divestments resulted losses eliminated advantages 'diversified portfolio securities.' reply noted accept hypothesis incurred caused Act,11 claims, measured absolute remained after priority necessarily 18 mechanical features disapproved Commission.12 19 Amended Plan. acquiesced submitted addition meeting objections original stocks 20 Over amended. event litigate fairness approval district court, 'to achieve expeditious persons * make prompt stop accrual up escrow arrangement.' secure issue 'an additional provide 'for period return received outstanding." Such could established court supervision returning Release 7119, p. 6. By later establishment option likely beyond court. 7190.13 21 Delaware 11(e). respondents 266, contending erred awarding shares. o jected finding appropriateness arrangement litigation. 22 record controlled, (71 F.Supp. 797, 802) 'in inquiry relative based colloquial equity.' standard, thought necessitated consideration factors attached little importance. Thus important consider terms securities, history more offset factor accepted. event, considerations effect. compelling surrender 'this enhanced value,' worked hardships common. All classes suffered result Act. Earnings retained sacrifice contributed enhancement 'colloquial equity,' conceived controlling our decision supra, compelled conclusion Arguments absence profitable amending thus agreement prescribed approved, concluding merit feature. 71 797. 23 Third Circuit regarded central scope properly charged duty exercising full independent equity function tribunal within limitations 168 F.2d 722, 736. 24 taken arriving surrendered shareholders, criticized while omitting evaluate same failing value. estimated earning Engineers, absent apportioned accordance process valuing approach, substantial occurred virtue divestitures Act.'14 Losses nature 'should returned credit side enterprise's balance sheet matter bookkeeping.' Id. 737—738. 25 particular: substituting own valuation do this. reject valuation, light court's views. 26 rendered, consummated, exception disputed arrangement, employed preserve proper. 27 We granted certiorari importance questions presented administration 335 851, 80. I. 28 conferred courts Act' went heart instant controversy.' 729. apparently took position setting aside agency's unless those lacked 'any rational statutory foundation.'15 This rejected Distinguishing judicial 24(a) being limited 'has plainly abused discretion matters,' Chenery Corp., 332 194, 67 1575, 1583, 1760, 91 1995,16 29 maintained urge regard, disturbed supported evidence authority. view, proper review. 30 longer takes so restrictive Court's formerly held. concedes eview 'independently' method employed. But urges question, employed, law, itself compensating instead delegating task fixing standard. 31 alternative argues 'If, below seemed assume, Section manner applicable Interstate Commerce 77 Bankruptcy (11 U.S.C.A. 205),' said embody similar scheme administrative sustained contrary law. Ecker Western Pacific R.R. 318 448, 473, 63 692, 707, 87 892; R.F.C. Denver Rio Grande W.R. Co., 328 495, 505—509, 66 1282, 1288—1290, 1384, 90 1400. 32 problem intended arises complicated fact one, two procedures type question. 33 afforded itself. relates approving plans registered subsection (b). if, notice opportunity hearing, 'shall find modified, necessary effectuate (b) plan.' Then follows request company, may apply enforce carry out If shall section 11,' 'as equity' exclusive jurisdiction possession assets, appoint trustee, purposes carrying plan.17 34 mode 24(a). applies abbreviated form follows: 35 'Any person party aggrieved obtain circuit appeals filing sixty d ys written petition *. certify file transcript upon complained entered (S)uch affirm, modify, order, whole part. objection urged reasonable grounds failure do. findings facts, evidence, conclusive.'18 36 Appeals, focusing emphasized section's requirement declared status explicit making conclusive, evidence; limiting them; restricting showing requiring remand evidence. 37 Chiefly reached equit functioning differed, noted, limitations. 38 substitute equitable,' considering independently denominated equities.' Accordingly, reaching numerous final determinations, arrived over-all opposite Modifying latter amount, ordered enforced modified. 39 general giving withholding whole, accord dispositions Stressing statements appearing legislative 11, gave strong analogy functions 'when Sherman Hepburn Acts (15 §§ 1—7, note, 49 seq.) compulsory corporate readjustments public policy expressed acts.'19 added: 'We think adjudging controversy arising proceeding, powers duties inherent circumstances.' upheld power, equity, withhold enforcement equities,' notwithstanding even though clear error law abuse discretion. 40 viewed differently placed 'The strictly de novo See Application D.C.Del., 50 965, 966.' 732. aliunde record, decide unfair inequitable, cause consideration, new wrong ordering refuse remand. Only enforced. 41 reorganization, including receiverships, insolvent former 77B U.S.C. 207, Chapter X reorganizations (id. 501 seq.), although 'mean imply grant untrammeled bankruptcy proceeding.' 735—736. Nevertheless, goes raised passed upon.' 735. critical phra e alike framing test disapproved, always embraced phrase equivalent,' 'vary much statute case,' 734, consummated way receivership, 77B, suit X, proceeding 77, 205, 42 variant respectively parties demonstrate problem. Each support none difficulties, terms, intent practical consequences. 43 throws There was, surprisingly, casual, indeed tangental, discussion it. drawn referred rests chiefly statement Senator Wheeler, cosponsor bill, during colloquy debate Senate floor margin.20 occur incidence arose incidentally course extended centered about receivership stood debate. 44 subsequent decisions cases, exclusively courts, above. supra; supra. Significantly, seems included grouping analogical purposes. And makes difference pointing decides subject narrow allowed. 45 But, complicate further, weakened rulings rested language repeated presently language, (e) provided: 'If property purpose section, report This, held, left 'without necessity reexamination material legal standards.' 472—473, 892. 46 hand, opposing highly indiscriminate. Insofar includes e.g., pursuant readjustments, ignores effort brigade processes. Nor does differences 'from statute,' construed reorganizations, othr. perhaps most important, substitutes statutes proceedings, together reading comparative isolation context particularly reference toward harmonizing bringing close possible operation. 47 entirely dissimilar review, depending appeal Company's hard imagine good reason move deliberately. assuming conducted wholly expressly certainly produce incongruous results very difficult impute unmistakably command. 48 thing consequence be, effect, create differing application act, invoked. instance, reviewable questions, technical deal established, controlling. whatever to. Conceivably both routes. Indeed, instance Delaware, here submitted, precluded affirmation proceeding. L. J. Marquis Cir., 134 822, D.C., 965. Presumably, first, likewise conclusive against submitted. many purpose, hardly uniform undoubtedly mind entrusted primary experience, drafted To contemplated area discretion, content uniform, vary differ courts. 51 contrast specific 24(a), brevity lack specificity paucity tentative character history, caution importing breadth inconsistent sections parts statute, designed ligislative policies standards. objects outweigh analogies indiscriminately general, leading incongruities diversities Act's policies. 52 Indeed conclude object different enable authority invoke mobilize 'take of' trustee hold administer direction. 53 True, nothing resolution discretionary characterization relation conferred. define accuracy over committed judgment, involving conflicting Wheeler's comparison perhaps, despite casual interjection, nearly approaches disclosure 54 added dealt appear take,21 reviewed case,22 sharply focused here. While contain ruling valuations case, supplied correlation Accordingly unable c nclusion free passing disregard areas judgment. 55 Administrative finality not, course, agency 'fact' narrow, literal sense. prediction, 'facts,' like often basic develop rules knowledge exemplified determined purchased management over-the-counter formulation exchanged participation reorganized stock; cost purchased. 56 meaning 'detrimental consumers' 7(d)(6) 7(e), 79g(d) (6), (e). allowable cannot disturb.' (332 1583) ground delegated sort 'consistent Congress.' 57 Even latitude allowed play remains equitable. deny And, shareholders' position, argued, alternatively contentions scop presents decided erroneously 58 Taken broadly, argument entire issues, becomes judicially determinable. so, become irrelevant, solely 59 broad argument. determined. Among cour's violated 'absolute priority' attributed case; simply determined, standard; rightly alleged earlier comply Act; improperly essential determination. 60 raise decision, resolved. turn them purpose. II. 61 Challenges Investment Value Theory Valuation. rule 11(b)(2) allocated basis. 62 seek avoid arguments stated, practice consistent summary Appendix opinion. Light top system, obedience whose existence 'great-grandfather clause' 11(b)(2). exchange Power, subsidiary, Railways eliminate multi-tiered leaving continuing enterprise. 64 insufficient satisfy applicable. however 'if assumed materialized liquidating current deferred approximately fifteen arrearages dividends,' 632, 487, forced prived right prospective guaranteed charter. 'overall judgment' Power's legitimate proportion 5.48 preferred's 94.52 cent.' Ibid. Relying 636—637, 489—490, contemplation embodied 637—638, 490, valuation. easier solution permitting liquidations shift class another. abandon insofar equitable.'23 requires surrendered, invariably preference, creditors principle measure equivalence 'on business place.' 633, 488. commencement enforcemen time, show developing case.24 determinative. Federal occasion speak connection recognized measures Act.25 Seeking distinguish stockholers contend applicable, follow equivalence. 68 phrased comprehensive Otis, framers governmental act kind A reveals significant them.26 four contract 'was foreseeable.' 511.27 asserted distinction 'genuine liquidation,' termination enterprise system; essentially unchanged, corporation dissolved mandate incident system.' 70 probably suffice observe word 'liquidation,' used provision, quite obviously means corporations nore fundamental reasons require rejection relied 636-637, 489-490, contains hint reduction number company.28 justified continue. inapplicability '* lie continues another form. true reorganization. lies involuntarily, Far aiding Schwabacher States, 334 182, 958, 92 1305, supports rights. railroad merging determinative cumulatie entitled, 'In appraising stockholder's merger justice reasonableness, promise him governs, he once put constitutent contributing good.' 199, 967, 1305. 72 Again depended, enterprise, Congress, efforts economic goal, wished shifting maturing matured. opinion, construe federal purposes,'29 harm citizens.' 511. 73 rejecting corpoation serves answer related commom consequent 'matures' liquidation.' arguments, choose conforming varying compensated, answered 'be depend enforcing resorts holdi g devices consolidation, run afoul formulated adoption hampered structure consideratons avoidance harsh effects doubtful applicability undertaken.' 74 argue deemed inapplicable, 'doctrine frustration.' frustration edict supervening loss where falls. Neither other's disappointed expectations.'30 face security—which theoretically mirrors holder's contribution enterprise—is recover.' distinguishable terminated cash. observed above, 'by interests.' 75 authorities compel contend, decision. Considerable reliance S.E.C. 1215, affirmance Second 131 274. feature debenture deciding payable, bondholders principle,' compensation investment, investments, 'brought sovereign power—in congressional mandate.' 1223, 1228. affirming determination, binding performance excused. where, here, illegal impossible concept unforeseeable made.' 276. undewr obligation bonds, 'it let option. accordingly, bonds discharged obligations corporation.' 76 stock,31 neither nor holds excused.32 continue redeem Moreover need fix claim security. Massachusetts Mutual Life Commisson, 151 424,33 Eighth doctrine impossibility excused contractual agreed premiums circumstances case. 'whether, principal, bondholders' depends case.' 430.34 78 explains performing contract, holders' measure, look intention III. 79 Theory: Alleged Failure Take Account Prior Divestment Sustained Engineers; Its Stock Same Method Was Used Valuing Preferred; 'Colloquial Equities.' holder, Here, manifest solvency 'simplifies stockholers' satisfied.' 633—634, 488, Valuation con ern relationship effective, earlier, remote long afterward. 80 'Like statutes, incorporates treatment accorded interests. exists When evidenced superior agencies Fairness conclusion.'35 81 governing principles listed heading paragraph. note allowing equivalents replace destroy satisfaction. 82 A. theory premise systems remove uneconomic destroying mean, never part.36 substantially complies mandate. 83 sufficient reasons, illustrated administratively impossible, liquidated, revaluate every transaction gradual part, passed.37 reconstitute passed, necessary, example, retroactively consequences Puget Sound Corporation 1943 gained lost retaining time.38 difficulties procedure, multiplied years,39 insuperable. 84 second preserved divestiture assume place, passed; th early divestitures, useless place. collaterally attacked. 85 B. exchanging methods Where faced dual securit exchange. Recognizing placing dollar therefor.40 sole apportion evaluating expectation income risk surrendered. 86 satisfied cash, appropriately varies approach. workable compulsion reinvestment risk.' seeks is, 'How money ones?' sought deriving yield preferred,41 factor, 4.6%. Capitalization preferreds ranging $108.70 coincided Badger, preferred.42 88 rely study served check premises unnecessary estimate Act.43 became apparent exact valu immaterial, retire marked limits preferreds' commn produced hypothetical (the few months 1946).' criticize accepted employ, comparison, median chosen comparisom, computed covering representative time; complain low rates high levels January, 1946, abnormal. future, prediction informed embraces capacity hence worth, including, properties, past indicate reliable criterion performance.' Consolidated Rock Products Du Bois, 312 510, 526, 675, 685, 982. concede purchase selecting, abnormal speculative transient nature. done. today predicated conditions markets, permanent nature.' 'values temporary nature.'44 His pertinent considerations, Government financing debt, grade 1932 1945. Finally, status, thorough adequate. record. regarding underlying relatively permanent, able say 'no price.' 7041, 31. conceded 'these ($106.25, $111.38, $111.50, respectively) ample drop rates, lowering Any consummation advantageous yet remain subjected fluctuation erstwhile investment. fallen date.45 An variously articulated runs assigned something less liquidation. it, dealing cards off deck. hands (based theoretical 'investment value') holders, merely get happens remain. Under considered.' 802.46 94 initial assumption deals deck, Engineers. destroyed operation deprive part already forcing divest operating companies.47 95 addition, disappeared itself, spite came forward justification corporation, characterized 'economic monstrosity.'48 futile injured depriving 'leverage,'49 diversity centralized management, incidentally, largely passage Act.50 indicates tax advantage derived reporting commensurate preserving inflicted account, impaired adversely affecting prospects requies examination correlative stockholders.' recognition until fully satisfied. 97 cast mold Making thought, incidental bearing factor. 'important consideration' 'not paid, how stock,' 'practically certain' $98 why premium.' F. Supp. 801. Other equities' preferred,51 enhancing common,52 hardship divestitures53 98 meant bear believing amorphous competence commissions, preserved. IV. 99 Escrow Arrangement. payable deposited escrow, litigation, sum 'measured prefered stockholders) outstanding.'54 $10 retention 100 due claims; thereon, consummation, escrow. Their one: actually limit them, higher prices; terminate inoperative, 101 meet demand. recover learn, adopted recommendation expedite stockholders.55 invested return. payment, approximates favorable 102 Our major respects, Consequently, sustained. advanced warrant conclusion. 103 reversed remanded 104 Reversed remanded. 105 DOUGLAS JACKSON 106 Appendix. 107 Development Theory.* 108 cases participate book corporation's preferred.1 Satisfaction Commission.2 equitable, provisions.3 109 contemporaneous premium.4 earliest indenture equitable.5 opinions 'emphasized circumstances, rate, maturity date, prepaid proposed discharge security.' American 6176, 12. 110 trend preceding paragraph attributing experience Commissioner Healy, persistently dissented line finally case,6 vigorously. refusing satisfied, debentures principal.' 46.7 'worth principal,' suggested approach extend far. 47—48.8 111 Less year parallel noncallable preference. 6603. died November 16, dissented, stating controlled.9 divided 3—2,10 rehearing granted. pending, proposal, approved. 7951. 112 next majority December 5, 1946. again Pennsylvania Edison 8550. 113 contention payable.11 precedents resists price. 1227. Stat. 803, 79k(e), 79k(e). 764; 904; 41; 268. Columbia, 22, 1943, U.S.App.D.C. 138 936. applications certiorari. 322 723, 1273, 1561. prevented quorum advised partial rendered moot, vacated. 788, 96, 370. consist treasury obtained stortterm bank loan, $21,964,632 Engineer's warrants entitling State's $11.50 owned. loan deleted special owned Engineers) 13,000 dividend, service dissolve. March, 1928, sold, conversion privilege expired, October (inoperative proposed) $99.50 September, 1930, sold Except July 1, 1933, 31, 1936, arrears. single delinquency 1936 1937. $5.00 $123 1929; $60.94; $80.50 expiration overall is.$67.16. $53.98 existed, $85.23 since; $109.00 1929, $64.52. $6.00 highest 1945; $62.77. February latest covered hearings, selling 1/8, 3/4, 109. 'Engineers common, 1925, 5/8 1929 1/8 1935. 1946 36.' n. 45. Quotations text Release, indicated. summarized 'After analyzing (Badger) selected believed Engin ers. 1940 1945 'times earned,' 'proportion capitalization,' 'book preferred,' 'percent net quick obligations' parent earned.' disposition 1943. disposition, improved slightly studied. studied, $107.49 $118.31 $129.07 'Badger prepared ten similarity earned 1.49 times 1.40 1944 1.48 times, 1.54 2.52 2.48 2.46 3.20 3.9 5.4%, 4.5%. corresponding $111.11 $122.22 $133.33 concluded, characteristics' market, 4.6%, *' text. 30. cited previous result: Buffalo, Niagara Eastern 6083; England Associates al., 6470; 6176. hearings hand end reach $16,825,000. funds accumulated earnings, pursued adjustments observed: divestments, choice methods, limits, divestment. sales negotiated arm's-length. If, Sound, sale books indication excessive low. rising steadily program got way. 1945, filed, hig 37.' 34, 55. infra. unnecessary. Retention $65,000,000 trusteeship staff immediately creation protect payments due. 'incomplete unfair' include fees expenses Counsel constitute 'amendment' amend turns done aegis device mechanics consummation.' Caffrey, joining come dissolution, therefore, logical step following 11(b)(1), voluntary. Hanrahan concurred unnecessary, voluntary, 7119. Examples Natural Gas supra figure 'only equivalents.' 'All presumably adverted 738. us 'Unless foundation' equitable" inserted stake. precludes reversal save citing, authorities, (& Exchange) case), 195 208, 1582, 1583 (91 1995).' inapplicable Shenery see plan; (f) 18, application, may, deems thereof, wherever located; administer, direction theretofore possessed.' 'Sec. 24. (a) title wherein resides place business, days entry praying copy forthwith member officer thereof thereupon entered. Upon conclusive. leave adduce shown hearing seem modify taken, findings, recommendation, any, modification order. decree affirming, modifying, aside, final, Supreme certification 239 240 Judicial Code, (U.S.C., 28, secs. 346 347).' 79x, 79x. S.Rep.No.621, 74th Cong., 1st Sess. 13; Cong.Rec. 8845: 'Mr. Borah. President, I desire ask Montana 'On 50, beginning bill provides "In effective court.' 'I exactly understand language. Does mean permitted limited; recommendatory court? Wheeler. understand, supposed practically manner, recall, existing reorganizations. Indiana (Mr. Minton) my oust all, approves words really double courts.' Lahti Ass'n, 1947, 160 845, re D.C.Mass.1946, 378; S.E.C., 1944, 424, Laclede D.C.E.D.Mo.1946, 997; Bond Share D.C.S.D.N.Y.1946, 426; Minnesota D.C.Minn.1947, 528; Kings County Lighting D.C.E.D.N.Y.1947, 767, affirmed sub. nom., N.Y. 1948, 166 784; D.C.Me.1947, 452. Community 740, D.C.Del.1947, 171; North West D.C.Del.1948, 63; 164; Illinois Iowa D.C.Del.1943, 277; Standard 326, reversing D.C.Del.1945, Group Institutional Investors Chicago, M., St. P. P.R. 523, 565, 727, 749, 959; Northern Boyd, 228 482, 554, 931; Case Los Angeles Lumber 308 106, 110; 982; Marine Harbor Properies Manufacturer's 317 78, 93, 64; 634, 430. determinative, judge declined else-where indicated awareness control 211, 216; Continent 527, 530—531. winding Corporation.' 'Upon involuntary.' 630, 6, 486, foreseen reenforced draftsmen charter, 'is arbitrarily whatsoever enterprise.' references Continental 259 156, 540, 871 (S. Rep. 621, 33; H.R. 1318, 49—50; 4607, 8432) 'leave doubt genuine Act,' control. propositions pointed 'turned equally ome matured varied action.' 639, 491, proceeds refute here: feel constrained case's) normal routine, thereby matured.' described construing purposes, solvent hold, apply. liquidated payable.' 967. Law Institute, Restatement, Contracts 468, comment 3. cf. Dewing, Financial Policy Corporations 1247, n.r. (4th ed., 1941) obvious bondholdes bankruptcy. tendency treat same. See, 1226—1227; Cities 4944. citation majority, 'Compare 274; 997,' assistance directly sentence: 'Where pre-existing exist variance foreseeable made, operate.' Affirming 997. Two appeals, cite purport bond, nd payable. syllogism disposes frustration, rationale cases. City Chicago 65; 326. quoted views, opposed 635, 17, 489; 4215, passed.' manner. 'ex weighed calculation, 3% old 99.3% interest. away 226. contingent expectations. subsequently $764,765. Appeals' actual considerably half 1947 737, citing Moody's Manual (1947) 53, supp. Vol. 19, 1914. observes oversimplification complex problems recapitalization occurred. notes carnings figures fail reflect use lower depreciation estimate, capital expenditures ceased figure. Absent sound imports uncertainties. Further, evaluation $764,765 recapitalization, stocks. account. example saying, 'Under profit $4,000,000.' 737. 1931 loaned $3,500,000 192,119 Paso's assignment options resale 1937 acquired exercise, realized profit, repayment $2,700,000 transactions $4,000,000 assumptions timing managerial peak dubious premises. began integration proceedings. text, 482 711—712, 565—566, 639—640, 490—491, analysis, 8, 8. 'give tests valuation.' 736—737. precise based. 738, 525, 684, Collier, 3849—3855 (14th 1947). enough provisions, forecast marks ceiling. Cf. 479—483, 710—712, permanence extremely tocks value' greater artificial clearly purely transitory character.' reconcile 'finding' appears published opinion: changed circumstances. time.' predominately fact, disturbed, reconsideration. affect predictions. states 'made 'value' ascribed Corpoation Christian Johnson, t utterly abundance disposed Gulf, separate entity Virginia. situation, admits monstrosity' participants maintain divested. Estimates range $172,000 $365,000 year. freely justify expenditure. undertake stand independently. perform carried Virginia's management.' 18. 'Leverage' term describe rental borrowed capital. Assuming $39,000,000 'leverage' endangering $66,768,148 warrants). quotation unlikely stockholders: immediate benefit $14,650,000, tha $16,825,000 earings. dividened requirements. charge 32. 11—12; Additional Views Representative Eicher, H.R.Rep. 46—47; Statement House Managers, 1903, 70—71; Committee Executives, Summary 2796, Sess., Annotations, June, 1935, 7. 7, 871, whether, shared antitrust laws. $4,000,000, comprised $3,204,795, $5, $10, preferred; $484,325, simple 4.76% 5% 5.45% $310,880, cover remuneration claimed heard established. 7190, insisted throughout resort Applications stay denied plan's $110. apprised recommend expeditiously remmant recommendation. hearing. declare 182; Water 893; case); 226; Sout Colorado 4501; 4618. discussed Dodd, Relative Rights Preferred Shareholders Recapitalization Plans Harv.L.Rev. 295. Case, right. led dissent Text, 6470, 378, sub nom. 845. 4944, pp. 16—17; Georgia 5568, 16—17, 20—27. 1222, 820, 824, 4686, enforced, 527; 4900, 997, 424. 1222; 824. majority's premiums, admitted discloses investing vaguely heralded doctrine.' 6176 47. bar, declines predict asserting Healy's explained statement: 'When signed Report President Roosevelt understood preservation refer portfolios. believe denying statute.' 6603, 43—44. Caffrey irrelevant 5499. E.g., 5850; Mississippi River 5776; 5796.

Category: 7