In Re American Mariner Industries, Inc., Debtor. Crocker National Bank v. American Mariner Industries, Inc., Debtor-Appellee

Crocker National Bank, a secured creditor, has appealed from a judgment of the bankruptcy court, 10 B.R. 711 (Bkrtcy.C.D.Cal.1981), affirmed by the bankruptcy appellate panel, 27 B.R. 1004 (Bkrtcy. 9th Cir.1983) denying Crocker relief from the automatic stay imposed under 11 U.S.C. § 362 (a). We reverse and remand to the bankruptcy court for further findings.

I. Issue on Appeal

The sole issue is whether an underse-cured creditor who is stayed by a bankruptcy petition from repossessing its collateral is entitled, under the concept of “adequate protection”, 11 U.S.C. § 361 , 362, to compensation for the delay in enforcing its rights against the collateral.

II. Facts and Proceedings Below

The facts are not disputed. In 1978 Crocker made a loan to American Mariner secured by a perfected security interest in “basically all of the American Mariner’s assets.” On December 12, 1980, American Mariner filed a petition for reorganization under Chapter 11 of the Bankruptcy Code. 11 U.S.C. §§ 1101-46 . At that time American Mariner’s debt to Crocker, including accrued interest, was approximately $370,-000, secured by collateral worth $110,000. Crocker filed a complaint for relief from or…