Ch 11 Question - Two Unsecured Classes

[Yahoo Bot]

Jon,
Thank you. I just looked at Loop and it seems the existence of a guaranty and also the option to take an 1111(b) election are two reasons why the claim might be separately classified. It looks like time for me to really try to understand 1111(b), if that is possible.
Link Schrader, Attorney
Law Office of Link W. Schrader

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[Yahoo Bot]

Was impossible until recently - now just "almost impossible." See in re Loop - recent 9th Cir BAP case. In Loop they had a consenting class but separately classified the deficiency.
>
> I am looking at caselaw and considering filing a plan in a chapter 11 case that strips down a commercial mortgage loan and puts the unsecured portion in a separate class from the general unsecured creditors. I would do this because if I put the unsecured part of the mortgage with other unsecured creditors the mortgage creditor could prevent there from being a consenting class. If I do two unsecured classes with different treatment for the unsecured mortgage claim, then I believe we can get the general unsecured creditors to vote for the plan.
>
> This seems to be allowed from the caselaw, but all the cases I am finding are from the 1980s. Any guidance toward a recently confirmed plan where this was done would be appreciated.
>
> Link Schrader, Attorney
> Law Office of Link W. Schrader
>

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[Yahoo Bot]

Judge Riblet wont allow it.
On May 11, 2012 7:12 PM, "Giovanni Orantes" wrote:
> **
>
>
> Not usually possible. There must be something to distinguish the sliced
> off unsecured portion from the rest of the claims in the general unsecured
> class. For example, I have previously argued that such debt is different
> because I filed a complaint challenging it on the basis of fraud in the
> inducement or lack of corporate authority, etc.
>
> On Fri, May 11, 2012 at 5:00 PM, Link W. Schrader
> Giovanni Orantes, Esq.
> Orantes Law Firm, P.C.
> 3435 Wilshire Blvd. Suite 1980
> Los Angeles, CA 90010
> Tel: (213) 389-4362
> Fax: (877) 789-5776
> e-mail: go@gobklaw.com
> website: www.gobklaw.com
>
>
>
>
Judge Riblet wont allow it.
On May 11, 2012 7:12 PM, "Giovanni Orantes" <go@gobklaw.com> wrote:
Not usually possible. There must be something to distinguish the sliced off unsecured portion from the rest of the claims in the general unsecured class. For example, I have previously argued that such debt is different because I filed a complaint challenging it on the basis of fraud in the inducement or lack of corporate authority, etc.
On Fri, May 11, 2012 at 5:00 PM, Link W. Schrader <lschrader@-- Giovanni Orantes, Esq. Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 1980Los Angeles, CA 90010Tel: (213) 389-4362Fax: (877) 789-5776
e-mail: go@gobklaw.comwebsite: www.gobklaw.com

The post was migrated from Yahoo.

[Yahoo Bot]

Not usually possible. There must be something to distinguish the sliced
off unsecured portion from the rest of the claims in the general unsecured
class. For example, I have previously argued that such debt is different
because I filed a complaint challenging it on the basis of fraud in the
inducement or lack of corporate authority, etc.
On Fri, May 11, 2012 at 5:00 PM, Link W. Schrader

The post was migrated from Yahoo.

[Yahoo Bot]

I am looking at caselaw and considering filing a plan in a chapter 11 case that strips down a commercial mortgage loan and puts the unsecured portion in a separate class from the general unsecured creditors. I would do this because if I put the unsecured part of the mortgage with other unsecured creditors the mortgage creditor could prevent there from being a consenting class. If I do two unsecured classes with different treatment for the unsecured mortgage claim, then I believe we can get the general unsecured creditors to vote for the plan.
This seems to be allowed from the caselaw, but all the cases I am finding are from the 1980s. Any guidance toward a recently confirmed plan where this was done would be appreciated.
Link Schrader, Attorney
Law Office of Link W. Schrader

The post was migrated from Yahoo.