In re Bernhard Steiner Pianos USA, Inc.

Bernhard Steiner Pianos (debtor), a piano retailer that sold new and consigned instruments, filed for Chapter 11 reorganization while remaining open. Its plan grouped piano consignors and floor-plan lenders — both general unsecured creditors — into separate classes, prioritizing payment to the consignors. The floor-plan lenders objected, arguing both groups should share one class since both held general unsecured claims. The company's founder testified that a thriving consignment business, damaged by unpaid consignors, was critical to a successful reorganization and that priority payment would restore its reputation.