In Re Griffiths

MEMORANDUM OF DECISION

JAMES A. PUSATERI, Bankruptcy Judge.

In this chapter 11 proceeding, the parties have asked the Court, in a declaratory action, to determine if 11 U.S.C. § 1129(b)(2)(A)(iii) allows the debtors to cram down their plan of reorganization when an electing secured creditor intends to vote to reject the plan.

The issues presented for determination are:

1. If a recourse, undersecured creditor, in its own class, has made an election under 11 U.S.C. § 1111(b)(2), and rejects the debt- or’s plan of reorganization, is the creditor receiving the “indubitable equivalent” of its claim,…