In re Figter Limited
United States Court of Appeals for the Ninth Circuit
118 F.3d 365 (1997)
Teachers (defendant), the sole secured creditor holding a $15.6 million note against Figter's (plaintiff) apartment complex, opposed Figter's proposed reorganization plan converting the property to condominiums out of concern the conversion would create an unwieldy lien situation, and purchased 21 of the 34 unsecured creditor claims at full value to gain blocking power over the unsecured class needed to confirm the plan; the bankruptcy court found Teachers had not acted in bad faith and that each of the 21 purchased claims entitled it to a separate vote, and the district court affirmed. Figter appealed.
Whether a secured creditor acts in bad faith by purchasing multiple unsecured claims to protect its self-interest and block confirmation of the debtor's reorganization plan, and whether the individual claims purchased entitle the creditor to only one vote within the unsecured class.