In Re North Valley Mall, LLC

CORRECTED AMENDED MEMORANDUM OF DECISION ON CONFIRMATION OF DEBTOR’S SECOND AMENDED PLAN

Confirmation of the Debtor’s Second Amended Chapter 11 Plan of Reorganization (“plan”) came on for hearing May 6, 2010. The Court heard testimony from the parties’ expert witnesses, received documents and declarations into evidence, considered the arguments of the parties and took the matter under submission. The Court has also since received and considered the closing briefs and replies of both the debtor and of the only party objecting to confirmation, Key Bank National Association (“the bank”). The Court now renders its Memorandum of Decision on Confirmation.

Primarily the Court is required to decide two closely interrelated questions, i.e.: (1) is the plan “fair and equitable” because it complies with 11 U.S.C. § 1129 (b)(2)(A)(i) in that the promised monthly payments over the seven year term of the plan, inclusive of interest, when reduced to present value, yields a sum that is not less than the secured claim of the bank; and (2) is the plan “feasible,” or in words of the statute, not likely to be followed by liquidation or further need for reorganization, as is required under §…