Kalodner, Forman and Freedman, Circuit Judges.
This case involves the consolidation of two appeals from an order of the United States District Court for the District of New Jersey of January 12, 1968. In Appeal No. 17088, twenty-six debtor corporations and an official creditors committee question the propriety of that order which granted the motion of the Securities and Exchange Commission (hereinafter SEC) to dismiss arrangement proceedings under Chapter XI of the Bankruptcy Act, 11 U.S.C. § 701 et seq., unless amended petitions are filed either by the debtors or their creditors complying with the reorganization provisions of Chapter X of the Bankruptcy Act, 11 U.S.C. § 501 et seq. In Appeal No. 17112, appellants, Sidney, Emanuel and Isidor Engelhardt (hereinafter Engelhardt) and Kenron Co., challenge only that part of the District Court's order which relates to four of the corporations in which they claim substantial interests.
In 1932 Theodore J. Richmond formed a New Jersey corporation named Manufacturers Credit Corporation (hereinafter Manufacturers) to conduct a finance business. Sometime prior to 1948 it became a holding company and by 1967 a complex of twenty-six subsidiary or affiliated companies had been incorporated or acquired. Mr. Richmond was president of each company and controlled its affairs. The stock of each was owned directly or indirectly by Mr. Richmond, his wife and two daughters. The companies have been classified as follows:
1. Inter-City Transportation
Co., Inc. Franchised Inter-State Bus Line
2. Northeast Coast Lines Franchise Inter-State Bus Line
3. Orange & Black Bus Lines,
Inc. Franchised Inter-State Bus Line
4. Warwick-Greenwood Lake &
New York Transit, Inc. Franchised Inter-State Bus Line
5. Homestead Transit Co., Inc. Franchised Intra-State Bus Line
6. Inter-City Lines of New
York, Inc. Franchised Intra-State Bus Line
7. Lake Region Coach Co., Inc. Franchised Intra-State Bus Line
8. Fairview Motor Repairs, Franchised Intra-State Bus Line
Transit Co., Inc. Bus Leasing
10. Warwick Coaches, Inc. Bus Leasing
11. Washington Corp. Bus Leasing and Financing
12. Clifton Terminal Corp. Real Estate
13. Donal, Inc. Real Estate
14. Fairtrans Realty Corp. Real Estate
15. Jaytee Securities Corp. Real Estate
16. Monroe Securities Corp. Real Estate and Financing
17. Orblack Securities Corp. ...