Bankr. E.D.N.C.: In re Croatan Surf Club- Chapter 11 Plan for Single Asset Real Estate must be Filed within 90-days, but can be amended

Summary:

Croatan Surf Club filed a single asset real estate Chapter 11, with such real estate subject to a lien by Royal Bank America ("RBA").  In compliance with 11 U.S.C. § 362(d)(3), Croatan filed a Second Amended Plan within 90-days of filing the bankruptcy, but RBA sought relief from stay, arguing that such plan was patently unconformable and was also nullified by the filing of a Third Amended Plan, outside of the 90-day window.

The bankruptcy court, however, held that te Second Amended Plan was not patently unconformable.  § 362(d)(3) only require filing of such a plan, not actual confirmation of the plan.  The bankruptcy court also rejected the argument that the Third Amended Plan undid Croatan’s previous compliance with  § 362(d)(3), holding that there was not basis under § 362(d)(3) to precluded subsequent amendment of a plan.

For a copy of the opinion, please see:

Croatan Surf Club- Chapter 11 Plan for Single Asset Real Estate must be Filed within 90-days, but can be amended.pdf