United States Ninth Circuit

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Pacifica L 51 LLC v. New Investments Inc., 13-36194

In a Chapter 11 case, the bankruptcy court's order confirming a debtor's plan of reorganization, which proposed to cure the debtor's default on a loan by a payment that reflected a pre-default interest rate and extinguished any other late penalties required under the loan agreement, is reversed and remanded where this rule of In re Entz-White Lumber & Supply, Inc., allowing a curing debtor to avoid a contractual post-default interest rate in a loan agreement, is no longer good law in light of later-enacted 11 U.S.C. section 1123(d), which provides that, if a plan proposes to cure a default, 'the amount necessary to cure the default shall be determined in accordance with the underlying agreement and applicable nonbankruptcy law.'

Appellate Information

  • Decided
  • Published 2016/11/04

Judges

  • MURGUIA

Court

  • United States Ninth Circuit

Counsel