T-H New Orleans Ltd. Partnership v. Financial Security Assurance, Inc. (In re T-H New Orleans Ltd. Partnership)

DeMOSS, Circuit Judge:

I. FACTS AND PROCEDURAL HISTORY

In 1988, T-H New Orleans Limited Partnership (T-H NOLP), a hotel partnership, acquired its major asset, the Days Inn Hotel on Canal Street in New Orleans, Louisiana (the Hotel). In 1989, T-H NOLP sought to restructure the underlying mortgage debt on the hotel through a mortgage bond financing transaction. To achieve that end, T-H NOLP and six other hotel partnerships, all controlled by Monty Hundley and Stanley Tollman, obtained separate but cross-collat-eralized and cross-guaranteed first mortgage loans, which were secured by the hotels,…