JPMCC 2007-C1 Grasslawn Lodging v. Transwest Resort Properties

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Lender challenged the district court's denial of Lender's appeal from the bankruptcy court's order confirming a Chapter 11 plan of reorganization based on equitable mootness grounds. At issue was whether a lender that made colorable objections to a plan of reorganization in bankruptcy court and then diligently sought a stay in order to litigate those objections may obtain review of its objections on appeal even though the plan has been implemented. The court held that the lender’s objections are not equitably moot and should be considered on appeal because it would be possible to devise an equitable remedy to at least partially address the lender’s objections without unfairly impacting third parties or entirely unraveling the plan. Accordingly, the court reversed and remanded for further proceedings. View "JPMCC 2007-C1 Grasslawn Lodging v. Transwest Resort Properties" on Justia Law