West Headnote of the Day – June 7, 2010

June 7, 2010

West's Key 51 Bankruptcy
West's Key 51XIV Reorganization
West's Key 51XIV(B) The Plan
West's Key 51k3563 Fairness and Equity; “Cram Down.”
West's Key 51k3564 k. Secured creditors, protection of.

51 BankruptcyBankruptcy court did not err in determining that bank would not be provided with indubitable equivalent of its cash collateral by “cows for cows” plan submitted by Chapter 11 debtor-farmers, which proposed to use lawsuit settlement proceeds of $2.5 million to relocate debtors’ failed Idaho dairy business to Georgia and to give bank holding security interest in herd replacement lien in new cows; replacement cows were not equivalent of cash, in light of risks inherent in startup operation in locale where debtors had not operated.
In re Wiersma, 227 Fed. App’x. 603 (9th Cir. 2007)

Suggested by Bethany Rabe; Greenberg Traurig; Las Vegas, NV