In re MOORPARK ADVENTURE, a limited partnership, Debtor(s). CALIFORNIA FEDERAL BANK, F.S.B., Plaintiff(s), v. MOORPARK ADVENTURE, a limited partnership, Defendant(s)., 161 B.R. 254

Summary

During the proceedings, the parties stipulated on the record that the debtor had no equity in the subject property. The court granted the creditor's motion for relief from the automatic stay because the debtor had no equity in the subject property, and the subject property was not necessary to an effective reorganization. The court further determined that the debtor's plan of reorganization was not confirmable. The court denied the debtor's request to approve its disclosure statement, its motion for reconsideration, and its request for a hearing regarding its motion. The court found that the sole purpose and effect of the debtor's separate classification of the creditor's unsecured claim was to gerrymander classes in order to obtain the acceptance of an impaired class and, thus, attempt to satisfy the requirements of 11 U.S.C.S. § 1129(a)(10). The court concluded that the debtor failed to present sufficient justification to warrant the separate classification of the unsecured claim.