Wells Fargo Bank, NA v. Loop 76, LLC (In Re Loop 76, LLC)

MEMORANDUM

Wells Fargo challenges the confirmation of the reorganization plan under Chapter 11 of debtor Loop 76, LLC. We have jurisdiction over this appeal from the Bankruptcy Appellate Panel (“BAP”) under 28 U.S.C. § 158 (d). “This court reviews decisions of the BAP de novo, and thus reviews the bankruptcy court’s decisions under the same standards used by the BAP.” Arrow Elecs., Inc. v. Justus (In re Kaypro), 218 F.3d 1070, 1073 (9th Cir.2000). Findings of fact are reviewed for clear error; legal conclusions are reviewed de novo. Sigma Micro Corp. v. Healthcentral.com (In re Healthcentral.com), 504 F.3d 775, 783 (9th Cir.2007).

Before addressing the merits of this appeal, we must decide whether it is equitably moot. We hold that it is not, but because the bankruptcy court did not clearly err in finding that Genesee Funding held a secured claim and voted in good faith to accept the plan, we affirm confirmation of the plan.

1. Equitable Mootness

Loop 76 has moved to dismiss this appeal as equitably moot, arguing that the plan has been substantially consummated and that unwinding it now would unfairly prejudice claimholders not party to this suit who have been paid under the…