In re Arce Riverside, LLC

MEMORANDUM DECISION ON OBJECTION TO SECOND AMENDED CLAIM

DENNIS MONTALI, U.S. Bankruptcy Judge

I. INTRODUCTION

On September 1st and 2nd, 2015, the court conducted a trial on the Debtors’ Objection to the Second Amended Claim of Penn Equities, LLC, (“Penn”), and on September 3rd the court heard closing argument from counsel for the parties. At that point the matter was submitted for decision. The court then asked for further briefing on a discrete question, discussed, infra.

As explained below, the court will sustain the objection and enter an order disallowing the interest paid and ordering it…