Chase Manhattan Bank USA NA v. Stembridge

EDITH BROWN CLEMENT, Circuit Judge:

Creditor appeals from the bankruptcy court’s valuation of creditor’s secured collateral for the purposes of confirming debtor’s cram-down plan. The bankruptcy court ruled that the value of the collateral would be the greater of two values, one premised on the collateral’s foreclosure value as of the petition date, and the other based on the replacement value determined as of the plan confirmation date. Because we hold that the bankruptcy court erred in its valuation, we reverse and remand.

I

On August 13, 1999, Dawn Stembridge (“Stembridge”) entered into a…