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This entry was published on 2014-09-22
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Resumption of business in accordance with plan of reorganization
§ 610. Resumption of business in accordance with plan of
reorganization. The superintendent, in his discretion, may permit a
corporation of which he has taken possession or which is operating on a
restricted basis pursuant to regulations promulgated by duly constituted
authority, to resume business in accordance with a plan of
reorganization under which depositors and other creditors will receive
less than the full amount of their claims and/or in partial payment
thereof will receive certificates of beneficial interest in certain
segregated assets and/or stock of such corporation, and under which
stockholders will contribute their shares of capital stock and/or money
in lieu of assessments upon such stock. In any such case in which the
superintendent permits resumption of business pursuant to such a plan of
reorganization, all depositors and creditors and stockholders of any
such corporation, whether or not they shall have consented to such plan
of reorganization, shall be fully and in all respects subject to and
bound by its provisions, and claims of all depositors and other
creditors shall be treated as if they had consented to such plan;
provided, however, that the superintendent shall not permit a
corporation to resume business in accordance with such a plan of
reorganization unless it has been shown to his satisfaction that (1)
such plan is fair and equitable to all depositors and other creditors
and stockholders and is in the public interest and (2) that depositors
and other creditors, representing at least eighty per centum in amount
of its total deposits and other liabilities, exclusive of the claims of
depositors and other creditors which will be satisfied in full under the
plan of reorganization, and stockholders owning at least two-thirds of
its outstanding capital stock, as shown by the books of the corporation,
have consented in writing to such plan; provided further, that
permission to resume business under any such plan of reorganization
shall be granted by the superintendent only upon an order of the supreme
court in and for the county in which the principal office of such
corporation is located. The application for an order of the supreme
court pursuant to this section shall be made upon an order to show cause
which shall provide that notice thereof, of a kind which the court deems
to be adequate and proper, be given to depositors, creditors and
stockholders of such corporation.