In Re Buttermilk Towne Center, LLC

MEMORANDUM OPINION AND ORDER

The issue presented on creditor’s objection to Debtor’s Motion to Use Cash Collateral is whether an alleged “absolute” Assignment of Rents and Subleases and/or creditor’s actions in connection therewith, divested the Debtor of title to the rents, such that the rents are neither property of the estate nor cash collateral. For the reasons set forth herein, the creditor’s objections on these issues are overruled.

1. Factual and procedural background

In August 2004, Buttermilk Towne Center, LLC (the “Debtor”) entered into a Construction Financing Agreement with LaSalle…