Section 1129 Confirmation of plan.
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'''[http://www.txwb.uscourts.gov/opinions/opdf/11-31024-hcm_Patriot%20Place,%Ltd._2013-01-11%2023;05;18.pdf In re Patriot Place/In re Three Legged Monkey''' (January 11, 2013)] | '''[http://www.txwb.uscourts.gov/opinions/opdf/11-31024-hcm_Patriot%20Place,%Ltd._2013-01-11%2023;05;18.pdf In re Patriot Place/In re Three Legged Monkey''' (January 11, 2013)] | ||
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| + | '''[http://www.txwb.uscourts.gov/opinions/opdf/11-31024-hcm_Patriot%20Place,%20Ltd._2013-01-11%2023;05;18.pdf In re Patriot Place/In re Three Legged Monkey''' (January 11, 2013)] | ||
<br> '''Issues''': Unusual factual setting in which one Chapter 11 Debtor (owner and lessor of shopping center) and a separate Chapter 11 debtor (owner of sports restaurant/bar and lessee in shopping center) litigated numerous issues, including: (1) Whether Debtor-lessee could assume a shopping center lease under §365 with Debtor-lessor in Debtor-lessee’s bankruptcy case; (2) Whether Debtor-lessee could confirm a competing Plan of Reorganization in Debtor-lessor’s bankruptcy case; (3) Whether Debtor-lessor could confirm its Plan of Reorganization in Debtor-lessor’s bankruptcy case that proposed the sale of a shopping center to the City of El Paso under §363(f) free and clear of the leasehold interest of Debtor-lessee. '''Holdings''': (1) Debtor-lessee’s Motion to assume shopping center lease with Debtor-lessor was granted in Debtor-lessee’s bankruptcy case because Debtor-lessee complied with the requirements of §365(b), including: (a) cure of monetary defaults under the shopping center lease; (b) performance of incurable nonmonetary obligations under real property lease at the time of assumption; and (c) providing adequate assurance of future performance; (2) Confirmation of Debtor-lessee’s competing Plan of Reorganization in Debtor-lessor’s bankruptcy case was denied because such competing Plan: (a) was not currently feasible under §1129(a)(11); (b) litigation trust proposed in competing Plan was wasteful, not proposed in good faith, and did not provide adequate means for its implementation under §1129(a)(3), (5); and (c) deemed assumption of Debtor-lessor’s ground lease with the City of El Paso under the competing Plan was procedurally and substantively improper under the circumstances of the case; and (3) Confirmation of Debtor-lessor’s Plan of Reorganization in Debtor-lessor’s bankruptcy case was denied because such Plan: (a) did not satisfy any of the statutory conditions of §363(f) to permit the sale of the shopping center under the Plan free and clear of the leasehold interest of Debtor-lessee; and (b) contained undefined, non-consensual, non-debtor releases and exculpations prohibited by Fifth Circuit precedent. <br> | <br> '''Issues''': Unusual factual setting in which one Chapter 11 Debtor (owner and lessor of shopping center) and a separate Chapter 11 debtor (owner of sports restaurant/bar and lessee in shopping center) litigated numerous issues, including: (1) Whether Debtor-lessee could assume a shopping center lease under §365 with Debtor-lessor in Debtor-lessee’s bankruptcy case; (2) Whether Debtor-lessee could confirm a competing Plan of Reorganization in Debtor-lessor’s bankruptcy case; (3) Whether Debtor-lessor could confirm its Plan of Reorganization in Debtor-lessor’s bankruptcy case that proposed the sale of a shopping center to the City of El Paso under §363(f) free and clear of the leasehold interest of Debtor-lessee. '''Holdings''': (1) Debtor-lessee’s Motion to assume shopping center lease with Debtor-lessor was granted in Debtor-lessee’s bankruptcy case because Debtor-lessee complied with the requirements of §365(b), including: (a) cure of monetary defaults under the shopping center lease; (b) performance of incurable nonmonetary obligations under real property lease at the time of assumption; and (c) providing adequate assurance of future performance; (2) Confirmation of Debtor-lessee’s competing Plan of Reorganization in Debtor-lessor’s bankruptcy case was denied because such competing Plan: (a) was not currently feasible under §1129(a)(11); (b) litigation trust proposed in competing Plan was wasteful, not proposed in good faith, and did not provide adequate means for its implementation under §1129(a)(3), (5); and (c) deemed assumption of Debtor-lessor’s ground lease with the City of El Paso under the competing Plan was procedurally and substantively improper under the circumstances of the case; and (3) Confirmation of Debtor-lessor’s Plan of Reorganization in Debtor-lessor’s bankruptcy case was denied because such Plan: (a) did not satisfy any of the statutory conditions of §363(f) to permit the sale of the shopping center under the Plan free and clear of the leasehold interest of Debtor-lessee; and (b) contained undefined, non-consensual, non-debtor releases and exculpations prohibited by Fifth Circuit precedent. <br> | ||
Revision as of 13:04, 22 January 2013
In re Patriot Place/In re Three Legged Monkey (January 11, 2013)
In re Patriot Place/In re Three Legged Monkey (January 11, 2013)
Issues: Unusual factual setting in which one Chapter 11 Debtor (owner and lessor of shopping center) and a separate Chapter 11 debtor (owner of sports restaurant/bar and lessee in shopping center) litigated numerous issues, including: (1) Whether Debtor-lessee could assume a shopping center lease under §365 with Debtor-lessor in Debtor-lessee’s bankruptcy case; (2) Whether Debtor-lessee could confirm a competing Plan of Reorganization in Debtor-lessor’s bankruptcy case; (3) Whether Debtor-lessor could confirm its Plan of Reorganization in Debtor-lessor’s bankruptcy case that proposed the sale of a shopping center to the City of El Paso under §363(f) free and clear of the leasehold interest of Debtor-lessee. Holdings: (1) Debtor-lessee’s Motion to assume shopping center lease with Debtor-lessor was granted in Debtor-lessee’s bankruptcy case because Debtor-lessee complied with the requirements of §365(b), including: (a) cure of monetary defaults under the shopping center lease; (b) performance of incurable nonmonetary obligations under real property lease at the time of assumption; and (c) providing adequate assurance of future performance; (2) Confirmation of Debtor-lessee’s competing Plan of Reorganization in Debtor-lessor’s bankruptcy case was denied because such competing Plan: (a) was not currently feasible under §1129(a)(11); (b) litigation trust proposed in competing Plan was wasteful, not proposed in good faith, and did not provide adequate means for its implementation under §1129(a)(3), (5); and (c) deemed assumption of Debtor-lessor’s ground lease with the City of El Paso under the competing Plan was procedurally and substantively improper under the circumstances of the case; and (3) Confirmation of Debtor-lessor’s Plan of Reorganization in Debtor-lessor’s bankruptcy case was denied because such Plan: (a) did not satisfy any of the statutory conditions of §363(f) to permit the sale of the shopping center under the Plan free and clear of the leasehold interest of Debtor-lessee; and (b) contained undefined, non-consensual, non-debtor releases and exculpations prohibited by Fifth Circuit precedent.
