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IN RE REA HOLDING CORP. THE EXPRESS CO.
January 25, 1978
In the Matter of REA HOLDING CORPORATION THE EXPRESS COMPANY, INC., REA EXPRESS, INC., f/k/a Railway Express Agency, Inc., REXCO SUPPLY CORPORATION, Bankrupts
Henry F. Werker, D.J.
The opinion of the court was delivered by: WERKER
These are consolidated appeals from an opinion and order entered by the Honorable John J. Galgay, Bankruptcy Judge, on July 16, 1976 authorizing sale of the Bankrupt's authorities to Alltrans Express -- U.S.A. ("Alltrans") and an order entered on August 19, 1976 granting the trustee's motion to strike certain items from the record on appeal. Reaemco, Inc. ("Reaemco"), the appellant, was an unsuccessful bidder for the assets offered for sale.
The opinion and order dated July 16, 1976 was rendered by Judge Galgay after hearings held on June 23, 24, 25 and 30 and July 1, 8 and 9, 1976 and found the following:
1. That the offer of Alltrans[,] as amended on the record during the hearings, represents a fair and reasonable value for the Property;
2. That the Alltrans offer is the best offer which was submitted to the Court for consideration at such hearing;
3. That the acceptance of the Alltrans offer is in the best interests of the bankrupt estate;
4. That the Alltrans offer provides the probability of the greatest realization to the bankrupt estate from the sale of the property;
5. That the attorneys for the Trustee and the attorneys for Reaemco have stipulated that if a proper petition for reorganization under Chapter X of the Bankruptcy Act was or is properly filed before this Court, that the entire record made of these hearings, including but not limited to the order fixing the hearing, the application for such order and exhibits annexed, the stenographic transcript of all hearings and the exhibits introduced by all parties, the memorandum decision of this court and this order, shall constitute the entire record in support of such petition by such petitioning creditors; [and]
6. That it would be adverse to the interests of the bankrupt estate that any assets of the bankrupt presently in the hands of the Trustee be put at risk to enable the trustee to continue [to] expand an express business, other than the continued operation of the REXCO division by the Trustee pending the final disposition of the Property.
Reaemco's proposal was rejected by the Bankruptcy Judge in favor of a proposal made by Alltrans. Nevertheless, unless it can be shown that there is some evidence of fraud, deceit, mistake of fact or other inequitable overreaching Reaemco, as an unsuccessful bidder, has no standing to bring this appeal. In re Harwald Company, 497 F.2d 443, 444 (7th Cir. 1974). In this connection section 39(c) of the Bankruptcy Act limits the right of appeal from a decision of the Bankruptcy Court to aggrieved persons, which does not include unsuccessful bidders. See In re Realty Foundation, Inc., 75 F.2d 286, 287-88 (2d Cir. 1935).
The statement of issues presented on this appeal is as follows:
1. Whether the Bankruptcy Judge erred in failing to make findings as to the value of claims for services performed by employees from February 18, 1975 through November 5, 1975, when the Bankrupt was operated as a ...
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