Problem.Automatic stay

     A. In In Re Rogers Development Corp. why do you imagine that Heritage Bank wanted relief from the automatic stay? If Heritage Bank had adduced uncontroverted evidence of the recent discovery of high levels of radon on the property, would that have improved the possibility of Heritage Bank prevailing on its motion for relief from stay under Bankr. Code 362(d)(1)? Under Bankr. Code 362(d)(2)?  What if it had discovered evidence of toxic contamination of underground wells that supplied drinking water to the surrounding community?  See Jonathan Harr, A Civil Action (Random House 1995), made into a movie starring John Travolta.  If you plan to be a litigator, Harr's book is a must read.    

    Why was the committee representing unsecured creditors of the development companies opposed to relief from stay? 

    B.  Recall Problem.Foreclosure on mixed collateral.   Suppose that Kyoto International filed a Chapter 11 proceeding with the intention, among other things, of continuing the operations of its San Francisco sports bar and restaurant together with some but not all of its other sports bar/restaurant facilities throughout the United States.  (Do you remember the International House of Pancakes, or the Sizzler?)  Suppose that the bank is owed $600,000 and that the real property has a value of $450,000, the piano a value of $25,000, the baseball cards a value of $25,000, and the remaining equipment (not destroyed by vandals) a value of $25,000.   What can you advise the Bank of Japan concerning the likelihood of obtaining relief from the stay so as to permit foreclosure on the real property, the piano, the baseball cards, and the other equipment and fixtures of the restaurant?  What if the bank were owed $500,000?