Problem.Secured creditor in Chapter 11

   Recall Lovelady v. Bryson Escrow, Inc.  In that case, the Loveladys compromised in bankruptcy a secured claim for fear that a mortgage on a leasehold might be found unenforceable for failure of appropriate written evidence of the mortgage.  Suppose the enforceability of the mortgage had not been challenged in the bankruptcy proceeding (or the Loveladys had successfully resisted such a challenge) and suppose also that Loop's Hospitality Corporation had not converted its Chapter 11 to a Chapter 7 proceeding.  If the value of the leasehold, equipment and fixtures were less than the amount of the debt, how might Loop's plan of reorganization treat the Loveladys' claim?  See Bankr. Code 506(a), 1111(b), 1129(a)(8), and 1129(b)(2), and recall Question E of Problem.Mixed Collateral.