The Washington Blue Sky Law does not apply to transactions of corporations in the course of reorganization under court supervision in which securities are issued in exchange for existing securities or as payment to creditors. The law is applicable when such securities are issued for cash.
AGO 1953 NO. 112 > Aug 14 1953
BLUE SKY LAWS ‑- PERMIT TO ISSUE SECURITIES ‑- DEBTOR CORPORATIONS UNDERGOING REORGANIZATION UNDER SUPERVISION OF FEDERAL COURTS