Mr. Faison filed a voluntary Chapter 11 bankruptcy seeking, among other things, to continue to develop real property against which Summit Bridge held several claims. Summit Bridge objected to confirmation of Mr. Faison’s (third) plan of reorganization based on infeasibility at it was a “visionary scheme” that was “based on speculation, hope and desire, and has no demonstrable objective fact or facts as its foundation.”
While stating that it believed Mr. Faison could ultimately propose a feasible plan, the bankruptcy court found the current plan infeasible. This was in part due to a failure to treat each parcel of property in the proposed development as unique and of differing values, high degree of speculation as to both the values of the lots and the costs of expenses, etc.
While Mr. Faison has real property located in Orange, Vance and Wake Counties, not only is his primary residence in Orange County but also the majority of the number of properties and the value of those properties are located in Orange County, including the land which forms the primary basis for the Chapter 11 reorganization. That Orange County is in the Middle District of North Carolina, arguably makes that the proper venue for this case, but apparently filing out-of-venue in the Eastern District of North Carolina was preferable and not objectionable to neither the Bankruptcy Administrator nor other creditors. That the bankruptcy court in the Eastern District was, despite denial of confirmation, willing to propose concrete suggestions as to what would be necessary and sufficient to confirm a plan, may indicate at least part of reason for this preference.
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