Sacramento Real Estate Corp. v. First Chicago Bank (In Re Sacramento Real Estate Corp.)

FINDINGS OF FACT AND CONCLUSIONS OF LAW

JACK B. SCHMETTERER, Bankruptcy Judge.

Background

This Adversary proceeding 1 relates to bankruptcy proceedings filed by Sacramento Corporation (“Sacramento”) and its subsidiaries, Sacramento Crushing and Sacramento Real Estate Corporation (“Debtors” or the “Sacramento entities”) under Chapter 11 of the Bankruptcy Code (the “Code”), 11 U.S.C. § 101 et seq. The three bankruptcy proceedings have been substantively consolidated.

Sacramento Corporation holds all issued corporate stock of both Sacramento Crushing and Sacramento Real Estate. At the time of trial,…