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: