Niagara Hudson Power Corp. v. Leventritt (340 U.S. 336)
U.S. Supreme Court · decided January 15, 1951 · Supreme Court Database (Spaeth)
- Citation
- 340 U.S. 336 · 71 S. Ct. 341
- Docket
- No. 211
- Argued
- December 5, 1950
- Decided
- January 15, 1951
- Term
- October Term 1950
- Vote
- 6–2
- Majority author
- Justice Burton
- Issue area
- Economic Activity
- Disposition
- Reversed
- Outcome
- Petitioning party won
- Ideological direction
- Liberal
How the Justices voted
- Majority
- Chief Justice Vinson, Justice Minton, Justice Clark, Justice Burton (wrote), Justice Douglas, Justice Reed
- Dissenting
- Justice Frankfurter (wrote), Justice Black
Opinion excerpt
Mr. Justice Burton delivered thie opinion of the Court. These cases test the validity of the Securities and Exchange Commission’s finding that a plan of reorganization is “fair and equitable” within the meaning of § 11 of the Public Utility Holding Company Act of 1935, although the plan makes no provision for the participation of outstanding stock option warrants relating to the common stock of the company to be reorganized. The basis for the Commission’s conclusion is that it cannot find that there is a reasonable expectation, within the foreseeable future, that the market price of the common stock will exceed the exercise price of the warrants and that, upon consideration of all the circumstances, including the market for the warrants, the Commission cannot find justification for recognizing any present value in the warrants at the expense of the common stock. For the reasons hereinafter stated, we sustain the Commission. The Niagara Hudson Power Corporation, petitioner in No.'211, is a registered public utility holding company, incorporated under the laws of New York, whose dissolution is contemplated under the reorganization. It has outstanding notes in the amount of $20,000,000; 378,875 shares of first preferred stock, of $100 par value; 105,930 shares of second preferred stock, of $100 par value; 9,580,988% shares of common stock, of $1 par value; and Class B stock…
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