In Re Woodridge North Apts., Ltd.

OPINION

THOMAS E. CARLSON, Bankruptcy Judge.

Section 1111(b)(1)(A) of the Bankruptcy Code 1 provides that a nonrecourse deficiency claim must be treated as a recourse claim under a chapter 11 plan, unless the collateral is sold under section 363 or under a chapter 11 plan of reorganization. 2 The controlling issue in this proceeding is whether the “sale exception” to the general rule of section 1111(b)(1)(A) applies to a sale at which lienholders may not credit bid. I hold that it does not.

FACTS

Woodridge North Apartments, Ltd., the chapter 11 debtor in this case, is a limited partnership…