In re Holmes (02-52793)

The IRS argued that the debtor's proposed Chapter 11 plan was not feasible. The debtor proposed to sell his primary asset, a 6,708 acre tract of land, and use the proceeds to pay the costs of the sale, the secured claims, and the administrative claims. The debtor proposed to pay the IRS's priority tax claim of some $9 million by making semi-annual payments over a term of ten years. The proceeds from the sale would not be sufficient to satisfy the priority tax claim. The court determined that the debtor would not be able to perform the obligations called for in his proposed Chapter 11 plan. The court sustained the IRS's objection to confirmation.

Monday, November 10, 2003