Bankr. No.:
87-30162
Adv. No.:
94-3010
Chapter:
12
Date of Decision:
July 24, 1995
Issue:
Whether a § 1111(b) election made in a related corporate bankruptcy case prevented RE&CD from releasing a mortgage that Plaintiffs-Debtors had given to secure the corporation's debt?
Ruling:
Defendant-RE&CD's motion for summary judgment was granted. Debtors did not have a cause of action against RE&CD for refusing to release the mortgage Debtors had given to secure the corporation's debt. Under the terms of the modified § 1111(b) election in the corporate bankruptcy, the parties contemplated that the mortgage given by Debtors to RE&CD to secure the corporation's debt would not be released within ten years if the property was sold unless the corporation's debt to RE&CD was paid in full.
Full Bankruptcy Court Decision:
