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Bankruptcy Keyed to Levitan, 3rd Ed.
In re Bloomingdale Partners
Citation:
170 B.R. 984 (1994)Facts
Bloomingdale Partners, a limited partnership, filed for Chapter 11 bankruptcy protection in May 1991. Its primary asset was an apartment building in Bloomingdale, Illinois. After failing to confirm its initial reorganization plan, the Debtor filed a “Third Plan of Reorganization” that classified all unsecured claims together. The Zarlengas, who held a $40,000 claim based on a private nuisance theory related to noise from the apartment building’s air conditioning units, were placed in this class. Three days before the close of voting, the Debtor filed a “Modified Third Plan” that separated the Zarlengas’ claim from other unsecured claims. Hancock and the Zarlengas voted against the plan, while the two unsecured creditors in the new separate class voted in favor. If the Zarlengas’ claim remained classified with other unsecured claims, their negative vote would prevent confirmation. Hancock moved to strike the Modified Third Plan, arguing that the revised classification scheme was improper.
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