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acknowledged in ruling upon the partnership’s suit for rights of
redemption:
Were we to reverse the district court and look to
North Dakota law for our rule of decision Great Plains
would have the right to redeem at any time up to one
year after judicial sale. N.D. Cent. Code � 32-19-18
(1976). During this period Great Plains would be
entitled to the possession, rents, use, and benefit of
the plant. N.D. Cent. Code � 28-24-11 (1974). * * *
[United States v. Great Plains Gasification Associates,
813 F.2d at 195.]
Clearly, the 1-year redemption period, with attendant rights
to possess the plant and receive its profits, would have had
substantial value to the partnership. The project had generated
significant cashflow both before and after the foreclosure sale.26
According to credible testimony, the partners intended to use the
1-year redemption period to pursue further negotiations with DOE
to restructure the debt; the cashflow generated during the 1-year
redemption period would have allowed the partnership to sweeten
the pot in negotiating with DOE.
Respondent speculates that, in the light of DOE’s
unreceptiveness to the debt restructuring proposals put forward
immediately before the foreclosure sale, DOE would have also been
unreceptive to any further efforts to restructure the debt during
any redemption period. There is simply no way of knowing,
however, how DOE might have responded if the partnership had been
26 For the 11 months prior to the foreclosure sale, the
project had generated positive cashflow of about $57 million.
During the year after the foreclosure sale, the project generated
positive cashflow of about $16 million.
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