In the Matter of Texas Grand Prairie Hotel Realty, LLC

Texas Grand Prairie Hotel Realty, LLC (debtor) borrowed $49,000,000, secured by four hotels, and the loan was later acquired by Wells Fargo (creditor). After Texas Grand filed for chapter 11 reorganization, Wells Fargo rejected the proposed plan, so Texas Grand sought confirmation through cramdown under 11 U.S.C. section 1129(b), proposing to repay Wells Fargo's secured claim over ten years at 5 percent interest - 1.75 percentage points above the prime rate. Wells Fargo argued the rate should instead be 8.8 percent, but the bankruptcy court confirmed the plan and the district court affirmed, so Wells Fargo appealed.