CORPORATIONS: Quick Lunch in the Courts

For the past year Childs Co., after more than 50 years of peddling sanitary flap jacks, "unsurpassed" coffee and (more recently) the 60¢ soup-to-nuts special, has been teetering on the verge of bankruptcy.

Last week three small creditors named Deerbon, Grizzle and Zinman came right out and asked the U.S. District Court in New York City to order its reorganization under Chapter X of the Federal Bank ruptcy Act. More important to the rest of Childs's creditors, they persuaded the judge to order an immediate injunction against any more of the petty lawsuits that have recently plagued the company —...

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