Monday, March 23, 2015

(Published) - In re Scrubs Car Wash, Inc., No. 12-31204 ABC, slip op. (Bankr.D.Colo. March 20, 2015) (oral ruling given on February 13, 2014; judgment entered on February 18, 2014). 11 U.S.C. §§ 1111(b)(2) and 1129(b)(2)(A)(i).

In the context of a Chapter 11 reorganization, Judge Campbell denied confirmation of a plan. Among the grounds for denial, the Court found that the debtor's treatment of an undersecured creditor which had elected treatment under section 1111(b) of the Code and which objected to confirmation of the plan, did not comply with section 1129(b)(2)(A) of the Code. The opinion includes a detailed analysis of the interplay of the two sections of the Bankruptcy Code.

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