Just as Henry was planning to adopt Punky, a Fenster Hall bureaucrat named Simon P. Chillings rescinds his custody citing his age, his illness, and his lack of a steady income. Mike Fulton tries to change his mind but to no avail.
Punky's friends visit her at Fenster Hall. Hoping that Simon Chillings won't notice (and by taking his glasses), Margaux impersonates Punky so that the real Punky can visit Henry in the hospital.
