(Download) "Potter-Matlock Trust Co. v. Myers" by Court Of Appeals Of Kentucky # eBook PDF Kindle ePub Free
eBook details
- Title: Potter-Matlock Trust Co. v. Myers
- Author : Court Of Appeals Of Kentucky
- Release Date : January 15, 1950
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 55 KB
Description
KNIGHT, Justice. This is a suit by appellee acting for himself, and other bondholders similarly situated, against appellant, trustee for the bondholders for the Diamond Rock Asphalt Co. and all unknown persons holding bonds of that now bankrupt company, asking for a declaration of rights concerning the disposition of certain money now in the hands of the trustee. These are the facts in the case as shown by the pleadings and proof: Some years ago, the date not being material, the Diamond Rock Asphalt Co. was incorporated and bought the mineral rights of the defunct United Rock Asphalt Co. The bonds which had been issued by the latter company were placed in the hands of a bondholders' committee headed by E. G. Parsley of Parsley and Co. of Philadelphia and were later bought by the Diamond Rock Asphalt Co. which issued its bonds in payment therefor. The bonds were turned over to Parsley and Co. for distribution to the bondholders of the defunct United Rock Asphalt Co., this distribution being entirely in the hands of Parsley and Co. Subsequently the Diamond Rock Asphalt Co., hereinafter called the Asphalt Co., became insolvent and, on or about November 2, 1936, entered into an agreement whereby appellant, Potter-Matlock Trust Co., hereinafter called the Trust Co., became trustee for its bondholders. Under this agreement, the Trust Co. was directed to liquidate the assets of the insolvent Asphalt Co. and apply the proceeds to the payment of its outstanding bonded indebtedness. This it proceeded to do and declared eight dividends to the bondholders on dates ranging from the first one on December 27, 1939, to the final one on February 27, 1950. These dividends totaled 71.05% of the face value of the bonds, leaving a net loss to the bondholders at the present time of 28.95%. These dividend payments were made to all known bondholders, but the names and addresses of the owners of 110 bonds, which had been distributed through Parsley and Co. to the owners of the old United Rock Asphalt Co. bonds, were not known although every effort was made to locate them through Parsley and Co. and in other ways so that dividends could be paid to them. As a result of the inability to locate these unknown bondholders, approximately $7,863.03, representing the undistributed dividends, has accumulated in the hands of the Trust Co. as trustee with no apparent possibility of its distribution to the unknown bondholders. The assets of the insolvent Asphalt Co. have now been liquidated and the Trust Co. is desirous of making a settlement as trustee.