CP Holdings, Inc. v. California Public Employees Retirement System

Chapter 11 bankruptcy debtor CP Holdings, Inc. (CPH) appeals from an order of the district court1 affirming the bankruptcy court’s2 order overruling CPH’s objection to an amended proof of claim filed by the California Public Employees’ Retirement System (CALPERS), the holder of a promissory note executed by CPH in 1989. CPH objected to CALPERS’s proof of claim because it included a prepayment premium. CALPERS included the prepayment premium in its claim because, prior to CPH’s bankruptcy filing, CPH had defaulted on the promissory note and CALPERS had accelerated the debt thereunder; CALPERS…