440
Opinion of the Court
(1) The Bank's $54.5 million secured claim would be paid in full between 7 and 10 years after the original 1995 repayment date.8 (2) The Bank's $38.5 million unsecured deficiency claim would be discharged for an estimated 16% of its present value.9 (3) The remaining unsecured claims of $90,000, held by the outside trade creditors, would be paid in full, without interest, on the effective date of the plan.10
(4) Certain former partners of the Debtor would contribute $6.125 million in new capital over the course of five years (the contribution being worth some $4.1 million in present value), in exchange for the Partner-ship's entire ownership of the reorganized debtor.
The last condition was an exclusive eligibility provision: the old equity holders were the only ones who could contribute new capital.11
The Bank objected and, being the sole member of an impaired class of creditors, thereby blocked confirmation of the
8 Payment consisted of a prompt cash payment of $1,149,500 and a secured, 7-year note, extendable at the Debtor's option. 126 F. 3d, at 959, n. 4; 195 B. R., at 698.
9 This expected yield was based upon the Bankruptcy Court's projection that a sale or refinancing of the property on the 10th anniversary of the plan confirmation would produce a $19-million distribution to the Bank.
10 The Debtor originally owed $160,000 in unsecured trade debt. After filing for bankruptcy, the general partners purchased some of the trade claims. Upon confirmation, the insiders would waive all general unse-cured claims they held. 126 F. 3d, at 958, n. 2; 195 B. R., at 698.
11 The plan eliminated the interests of noncontributing partners. More than 60% of the Partnership interests would change hands on confirmation of the plan. See Brief for Respondent 4, n. 7. The new Partnership, however, would consist solely of former partners, a feature critical to the preservation of the Partnership's tax shelter. Tr. of Oral Arg. 32.
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