800 Bourbon Street, L.L.C. v. Bay Bridge Bldg Ltd

Case Type:
Business
Case Status:
Affirmed
Citation:
19-30926 (5th Circuit, Sep 03,2020) Not Published
Tag(s):
Ruling:
The debtor confirmed a chapter 11 plan in 2009 granting creditor Bay Bridge an in rem claim against property to the extent Bay Bridge had an "allowed secured claim." Bay Bridge filed a proof of claim in that case asserting a secured claim for $1.36MM, No party objected to Bay Bridge's proof of claim, Accordingly, Bay Bridge had an allowed secured claim for $1.36MM based on the 2009 plan that can be enforced as an in rem claim on the debtor's property in its 2014 case,
Procedural context:
Debtor 800 Bourbon appealed the district court's ruling affirming the bankruptcy court's determination that creditor Bay Bridge possessed an allowed, fully secured claim as a result of 800 Bourbon's chapter 11 plan that was confirmed in 2009.
Facts:
Bay Bridge loaned $1.2MM+ to 800 Bourbon and others during 2005-2006; the loans were secured by a building located at 800 Bourbon Street in New Orleans. Bay Bridge sought to enforce its security rights after default, and 800 Bourbon filed a chapter 11 case in 2008. 800 Bourbon confirmed a chapter 11 plan in 2009 granting Bay Bridge an in rem claim against the property to the extent that Bay Bridge had an "allowed secured claim," and providing that others would assume the obligation to repay the debt. Bay Bridge filed a proof of claim asserting a fully secured claim in the amount of $1.36MM. No one objected to the claim before the case was closed in 2011. The other obligors failed to pay Bay Bridge, and 800 Bourbon filed another chapter 11 case in 2014. 800 Bourbon scheduled Bay Bridge as an unsecured creditor owed $0.00; Bay Bridge filed a proof of claim as a fully secured creditor owed $1.98MM based on the confirmed plan and its proof of claim in 800 Bourbon's earlier chapter 11 case. 800 Bourbon initiated an adversary proceeding to challenge Bay Bridge's claim. The bankruptcy court granted summary judgment to Bay Bridge, and the district court affirmed.
Judge(s):
King, Stewart, Southwick

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