In re Monroe Park

• Decision Date: 22 February 1982
• Docket Number: Bankruptcy No. 81-75.
• Parties: In re MONROE PARK, a Limited Partnership, formerly known as Monroe Park, a Limited Partnership, with Henry L. Weinstein as General Partner, Debtor.
• Court: U.S. Bankruptcy Court — District of Delaware

18 B.R. 790 (1982)

In re MONROE PARK, a Limited Partnership, formerly known as Monroe Park, a Limited Partnership, with Henry L. Weinstein as General Partner, Debtor.

Bankruptcy No. 81-75.

United States Bankruptcy Court, D. Delaware.

February 22, 1982.

David Roeberg, Wilmington, Del., for Monroe Park.

Eduard F. von Wettberg, III, Wilmington, Del., for Metropolitan Life Ins. Co.

MEMORANDUM DECISION

HELEN S. BALICK, Bankruptcy Judge.

A confirmation hearing is scheduled for tomorrow morning on Monroe Park's second modified plan. That plan proposes to cure certain defaults and reinstate its 1973 mortgage to Metropolitan Life Insurance Company pursuant to 11 U.S.C. § 1124. Metropolitan's objections to the plan are stated in the alternative. The parties agree that the first objection presents no factual dispute but a legal issue that should be resolved in advance of the hearing.

That issue is: Can a mortgage be cured and reinstated under 11 U.S.C. § 1124 following an order of this court granting unconditioned relief from the automatic stay for the purpose of permitting foreclosure to proceed and where a judgment of foreclosure has been obtained.

The parties and the court are quite familiar with the history of this case but a brief summary of facts is necessary to put some perspective on the issue. Monroe Park's plan comes to a confirmation hearing approximately seven months after this court granted Metropolitan relief from the stay. Thereafter, Metropolitan pursued its foreclosure proceeding in Superior Court of the State of Delaware. In September 1981, Monroe Park's original general partner was replaced by Verino Pettinaro. On various occasions, before and after that replacement, Monroe Park applied to this court, the District Court and the Superior Court of Delaware for stays pending appeal, reimposition of the automatic stay, imposition of a new stay and injunctive relief against the foreclosure action. Each and every application was denied.

On January 4, 1982 the Delaware Superior Court granted summary judgment in favor of Metropolitan. Monroe Park's motion for reargument was denied and on January 28, 1982 judgment scire facias sur mortgage was entered in the total amount of $6,450,110.50 with interest from January 1, 1982 at 15% per annum plus costs.

It is clear that Congress intended a financially troubled debtor to be able to reorganize after there has been default and acceleration even in the face of state law which requires the consent of...