Resolution Trust Corp. v. Firstcorp, Inc. (In re Firstcorp, Inc.)

OPINION

WILKINSON, Circuit Judge:

This case raises the question of the appropriate treatment under federal law of a savings and loan holding company's commitment to maintain the capital of a purchased savings and loan subsidiary when the holding company files for bankruptcy under Chapter 11. For the reasons that follow, we hold that the appellant holding company had undertaken a capital maintenance obligation in this case and that it was required under 11 U.S.C. § 365(o) to cure any deficit in that obligation before it could reorganize under Chapter 11. In so holding, we affirm the judgment of…