United States Third Circuit

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In re Heritage Highgate, Inc., 11-1889

In a residential home builder's Chapter 11 proceedings, the Bankruptcy Court's determination that the secured claims of a group of secondary creditors should be valued at zero is affirmed, where: 1) in proceedings to value secured claims under section 506(a) of the Bankruptcy Code, a burden-shifting analysis is appropriate; 2) the Bankruptcy Court properly concluded that the fair market value of the debtor's project as of the plan confirmation date controlled whether the creditors' claims were secured; 3) denying the creditors future lot sale proceeds that exceed the project's judicially determined value as of confirmation did not constitute a form of impermissible lien stripping; and 4) the Bankruptcy Court did not clearly err in determining the value of the collateral securing the secured debt.

Appellate Information

  • Decided 05/14/2012
  • Published 05/14/2012


  • Rendell


  • United States Third Circuit


  • For Appellant:
  • Douglas J. Smillie, Samuel H. Israel

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