Federal 7th Circuit Court
Civil Court
Bankruptcy
Bankruptcy Court did not err, in instant single real estate asset Chapter 11 proceeding, in sustaining creditor's objection to debtor's proposal (as part of its reorganization plan) to substitute creditor's mortgage lien on said real estate with lien on 30-year Treasury bonds that approximated value of said real estate. Barring substitution of collateral was appropriate where instant creditor was undersecured in said real estate, and proposed substitution, which would have required creditor to wait 25 years to fully recover on its lien, would not be substantially equivalent to lien on real estate where risk profile of substitute collateral did not match risk profile on instant real estate lien. Also, Dist. Ct. did not err in dismissing instant bankruptcy proceeding after rejecting instant proposal since it was not required to consider debtor's subsequent proposal where it had previously rejected two proposals, and where third and last proposal was made well beyond 90-day deadline for submitting proposals.