Allen
Atalanta Corp. v. Allen
Opinion
Lead Opinion
Berzon, J.
In this bankruptcy case, two creditors, Atalanta Corporation (“Atalanta”) and An-atom Investment Corporation (“Anatom”), appeal from a confirmation of a plan reorganizing the assets of debtor Robert E. Allen (“Allen”). Atalanta and Anatom hold liens on certain property owned by Allen. Before the bankruptcy court confirmed the reorganization plan, Allen entered into a stipulation with Atalanta and Anatom, approved in a formal order by the bankruptcy court, which permitted Atalanta to foreclose on several of its hens. The bankruptcy court, however, confirmed the reorganization plan before Atalanta could complete foreclosure on the property, and the plan did not permit Atalanta to continue with the foreclosures.
Atalanta and Anatom contend that the bankruptcy court erred by confirming a reorganization plan that did not incorporate either the terms of the stipulation between the parties or the bankruptcy court’s order approving it. The bankruptcy court and the district court rejected this contention. We do as well and so affirm the decision of the district court.
BACKGROUND
Allen, a kiwi fruit farmer, filed for Chapter 11 bankruptcy in February 1998. Atalanta and Anatom held liens…