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Business Associations Keyed to Bainbridge
Escott v. BarChris Construction Corp.
Citation:
283 F.Supp. 643 (S.D.N.Y.1968)Facts
BarChris was engaged primarily in the construction of bowling centers. BarChris’s sales increased dramatically from 1956 to 1960. In December 1959, BarChris sold 560,000 shares of common stock to the public at $3 per share. The issue was underwritten by Peter Morgan & Company, one of the present defendants. By 1961, BarChris needed additional working capital and the registration statement of the debentures was filed wit the Securities and Exchange Commission. BarChris then made an abortive attempt to raise more money by the sale of common stock. It filed with the SEC a registration statement for the stock issue which it later withdrew. In October 1962, BarChris came to the end of the road and entered into a bankruptcy proceeding. BarChris defaulted in the payment of the interest due on the debentures. This is an action by purchasers of 5 1/2 percent convertible subordinated 15 year debentures of BarChris Construction Corporation.
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