In re Tomlin, Bankruptcy No. 82-00013.
Decision Date | 02 September 1982 |
Docket Number | Bankruptcy No. 82-00013. |
Citation | 22 BR 876 |
Parties | In re Paul TOMLIN, Debtor. |
Court | U.S. Bankruptcy Court — Middle District of Alabama |
George Cameron, Cameron & Cameron, Montgomery, Ala., for debtor.
A. Pope Gordon, Montgomery, Ala., for objecting creditors.
The debtor, having failed to gain the necessary acceptances for confirmation of his plan under Section 1129(a)(8) of the Bankruptcy Code, has applied to the court for confirmation under Section 1129(b). An objection to confirmation has been filed on behalf of creditors Stotler and Company, Anderson's Peanuts, Luverne Cooperative Services, Inc., and James W. Thomas. The objection was heard at the confirmation hearing on August 11, 1982, and there were present attorneys George W. Cameron, for the debtor, and A. Pope Gordon, for the objecting creditors.
The plan provides for full payment of secured claims substantially as contracted leaving the remaining two classes of unsecured claims as the impaired classes. Class eight consists of unsecured claims identified as trade creditors and the plan proposes to pay this class 6 percent of their claims over a six year period. This class did not accept the plan and three of the objecting creditors here are in class eight.
The above constitutes the fair and equitable test which must be met as a condition to confirmation under Section 1129(b). While several grounds of objection are interposed by creditors, the court will consider first the application of the fair and equitable rule.
In the present case, these dissenting unsecured creditors will be paid only 6 percent of their claims over a six year period and there is no question as to their impairment. The debtor under the plan will retain his ownership interests in both real and personal property of the estate and, if the plan is successfully consummated, he will ultimately own such property free and clear by reason of...
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