In re Les Ruggles & Sons, Inc.

*345 MEMORANDUM

JOHN C. MINAHAN, Jr., Bankruptcy Judge.

This Chapter 12 bankruptcy case presents the question of whether the debtor-in-possession may obtain post-confirmation financing under terms which grant the lender priority over allowed secured claims provided for in the confirmed plan. I conclude that the plan is binding upon the parties in accordance with its terms, and that secured creditors holding first liens in the debtor’s property may not be subordinated to post-confirmation financiers under authority of section 364 of the Bankruptcy Code.

Under the terms of the confirmed plan in this…