Bankr. No.:
84-30055
Chapter:
11
Date of Decision:
December 12, 1989
Issue:
(1) Whether the Farmers Home Administration is estopped from enforcing its § 1111(b) election? (2) Whether the sale provision in the debtor's plan is sufficiently specific to preclude the FmHA's § 1111(b) election?
Ruling:
(1) The debtor's failure to properly incorporate the FmHA's § 1111(b) election in its plan precludes it from attempting to estop the FmHA's § 1111(b)(2) treatment. (2) The FmHA is not precluded from making its § 1111(b) election despite § 1111(b)(1)(B)(ii), where the sale provision in the debtor's plan does not permit the FmHA, an undersecured recourse creditor, to "credit bid" its claim.
Full Bankruptcy Court Decision:
Appeal Summary:
In H & M Parmely Farms v. Farmers Home Administration, 127 B.R. 644 (D.S.D. 1990), the district court affirmed the bankruptcy court’s decision.
Full Bankruptcy Appellate Panel/District Court Appeal Opinion: