Bankr. No.:
85-50119
Chapter:
11
Date of Decision:
March 31, 1989
Issue:
Whether in a Section 506(a) hearing the real estate securing a claim should be valued as ranch land, the debtor-in-possession's present use, or whether it should be valued as sub-devisable land where the creditor can prove that the land is viable for this purpose?
Ruling:
The Court ruled that in a Section 506(a) hearing the real estate securing the claim of a creditor should be valued at its highest and best use where the creditor can prove that the land is more valuable for a purpose other than the debtor's present use, and that such proposed use is not speculative, but rather affects the property's present fair market value.
Full Bankruptcy Court Decision:
