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In re Terry Properties, LLC (Case No. 16-71449) 7/6/2017

After a two day trial on confirmation and the objections thereto, the Court denied confirmation of the Debtor’s Chapter 12 plan.   After determining the value of the property of this farming operation, the Court turned to the proper interest rate to be paid to secured creditor and feasibility of the plan.  Within the Till framework, the Court held that interest at the rate of prime plus 2.5% provided a rate high enough to compensate the secured creditor for its risk but not so high as to doom the plan.  The Court also denied approval of the third-party injunction language in the plan.  The Court allowed the Debtor an opportunity to amend its plan to address feasibility in accordance with the Court’s Opinion.

Thursday, July 6, 2017
Burden of Proof
Chapter 12 Issues
Confirmation of Plan