"Best Interests" and costs of sale - Chapter 11
Posted: Thu Oct 10, 2013 7:02 pm
John:
I don't have any idea to which case she is referring. If I were you I would call the judge's law clerk and see if the clerk will give you a hint. If you find out, I have one in a couple of weeks before the same judge, so keep us posted.
d
Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
> On Oct 8, 2013, at 3:02 PM, "John D. Faucher" wrote:
>
> Hello Brain Trust:
> I tried to confirm a chapter 11 plan in front of Judge Riblet last week. One reason it didn't confirm was that the judge found that it did not meet the "best interests" of creditors test, 1129(a)(7)(A)(ii).
> Judge Riblet announced that I had miscalculated the equity available to unsecured creditors, because I had factored in an 8 percent cost of sale for a $3.6 million apartment building, and I had also factored in the capital gains taxes on the property. These don't belong, she said, because of recent case law.
> I've looked and can't find any such case. All I see is that I am supposed to present the results of a hypothetical chapter 7 liquidation, which would definitely incur costs of sale and capital gains taxes. Does anyone know why she might think they don't apply in this test?
>
>
> John D. Faucher
> Faucher & Associates
> 818/889-8080
>
On Oct 8, 2013, at 3:02 PM, "John D. Faucher" <j.d.faucher@sbcglobal.net> wrote:
Hello Brain Trust:
I tried to confirm a chapter 11 plan in front of Judge Riblet last week. One reason it didn't confirm was that the judge found that it did not meet the "best interests" of creditors test, 1129(a)(7)(A)(ii).
Judge Riblet announced that I had miscalculated the equity available to unsecured creditors, because I had factored in an 8 percent cost of sale for a $3.6 million apartment building, and I had also factored in the capital gains taxes on the property. These don't belong, she said, because of recent case law.
I've looked and can't find any such case. All I see is that I am supposed to present the results of a hypothetical chapter 7 liquidation, which would definitely incur costs of sale and capital gains taxes. Does anyone know why she might think they don't apply in this test?
John D. Faucher
Faucher & Associates818/889-8080
The post was migrated from Yahoo.