Travelers Insurance Co. v. Olson (In Re Olson)

OPINION

WILLIAM V. ALTENBERGER, Bankruptcy Judge.

The Debtors filed a Chapter 11 proceeding in October of 1985 and filed their first amended plan of reorganization in July of 1986. Subsequently, they filed a motion to convert the Chapter 11 proceedings to a Chapter 12 proceedings, which motion was denied in January of 1987. Because the first amended plan failed to comply with the absolute priority rule found in Section 1129 of the Bankruptcy Code, 11 U.S.C. Section 1129, in July of 1987 the Debtors filed an amendment to the first amended plan wherein they proposed to bring their plan within the…