Narrative Opinion Summary
This case involves the consideration of a post-confirmation modification to a Chapter 11 reorganization plan initially confirmed on August 3, 1992. The debtor, Westwood Plaza Apartments, Ltd., filed a modification to address the remand order from the District Court, which instructed a reassessment of the interest rate on the U.S. Department of Housing and Urban Development's (HUD) unsecured claim. HUD contested the proposed modification, arguing the absence of a settlement that the debtor claimed had occurred. The debtor sought to comply with 11 U.S.C. 1129(b) through the modification but faced opposition based on the mandate rule requiring strict adherence to the appellate court's directives. The court distinguished this case from In re Western Real Estate Fund Inc., emphasizing that the District Court had upheld the original plan except for the interest rate issue. Consequently, the court denied the modification, citing the need to first determine the appropriate interest rate for HUD's claim. The feasibility of the reorganization plan was deemed moot in light of the remand. A hearing will be scheduled to establish the correct interest rate, in accordance with Judge Brown's directive.
Legal Issues Addressed
Determination of Appropriate Interest Rate under 11 U.S.C. 1129(b)subscribe to see similar legal issues
Application: The court must first establish the correct interest rate for HUD's unsecured claim before considering any plan modifications.
Reasoning: Before considering any modification to the Debtor's Plan, the appropriate interest rate for the unsecured claim must be determined to comply with 11 U.S.C. 1129(b).
Feasibility of Reorganization Plan under 11 U.S.C. 1129(b)subscribe to see similar legal issues
Application: The issue of plan feasibility is rendered moot by the District Court's remand for reassessment of the interest rate on HUD's claim.
Reasoning: The District Court has deemed the issue of Plan feasibility under 11 U.S.C. 1129(b) moot due to the remand for reassessment of the interest rate on HUD's unsecured claim.
Mandate Rule in Bankruptcy Proceedingssubscribe to see similar legal issues
Application: The court emphasizes adherence to the District Court's specific directives on remand, limiting the scope of permissible modifications to the plan.
Reasoning: The mandate rule dictates that the trial court must closely follow the appellate court's directives, and any relief not explicitly mandated is considered erroneous.
Post-Confirmation Modification of Reorganization Plansubscribe to see similar legal issues
Application: The court evaluates whether the proposed modification to the Chapter 11 reorganization plan complies with the remand order from the District Court.
Reasoning: The court considers the Post-Confirmation Modification to the Debtor's Confirmed Plan of Reorganization filed by Westwood Plaza Apartments, Ltd.