In re Gunnison Center Apartments, LP
United States Bankruptcy Court for the District of Colorado
320 B.R. 391 (2005)
Relevant factsFree
Lenox Mortgage V (defendant) held a security interest assigning it all rents and income from Gunnison Center Apartments' (plaintiff) five-building complex. After Gunnison defaulted and filed Chapter 11, Lenox demanded an accounting of cash collateral, refused to let Gunnison use any collected rents, and moved for relief from the automatic stay.
IssueFree
Under the Bankruptcy Code, may a court allocate cash collateral between a secured creditor and a debtor using the net-proceeds approach?