Isha Homes, LLC

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
RALEIGH DIVISION
IN RE:
ISHA HOMES, LLC,
DEBTOR.
CASE NO. 11-05834-8-JRL
Chapter 11
ORDER
This matter came before the court on the debtor’s motion for confirmation of its chapter
11 plan. A hearing was held on February 7, 2012 in Raleigh, North Carolina.
The debtor filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code
on August 1, 2011. On October 31, 2011, the debtor filed its proposed chapter 11 plan and
disclosure statement. The plan provides treatment for three classes of creditors. Class 1 and
class 2 are made up of secured creditor claims. All creditors in classes 1 and 2 have agreed to
their treatment under the plan. No creditors in class 3, the general unsecured claims, cast a
ballot. Pursuant to the proposed plan, general unsecured creditors will receive five cents on the
dollar, and the debtor’s principal will retain his equity interest in the debtor.
Because the debtor failed to obtain ballots from class 3, that class is deemed to have
rejected the plan. In re Jim Beck, Inc., 207 B.R. 1010, 1015 (Bankr. W.D. Va. 1997), aff’d, 214
B.R. 305 (W.D. Va. 1997), aff’d, 162 F.3d 1155 (4th Cir. 1998). Therefore, the court has no
SO ORDERED.
SIGNED this 09 day of February, 2012.
________________________________________
J. Rich Leonard
United States Bankruptcy Judge
____________________________________________________________
Case 11-05834-8-JRL Doc 110 Filed 02/09/12 Entered 02/09/12 12:23:38 Page 1 of 2

1 This extension is granted pursuant to Rule 3017(c) of the Federal Rules of Bankruptcy
Procedure.
2
authority to confirm the plan at this juncture. However, given that the secured classes accepted
their treatment under the plan, the court finds it appropriate to extend the time in which the
unsecured class may accept or reject the proposed plan by 14 days from the entry of this order. 1
During this time, counsel for the debtor may inform the creditors in the unsecured class of this
extension. If no unsecured creditors submit ballots in favor of the proposed plan, debtor’s
counsel may file an amendment to the plan in which the debtor’s principal will purchase the
equity interest in the debtor for a stated amount; further the amendment shall provide 10 days
notice to all parties that an auction of the equity interest will be conducted in the courtroom if
anyone provides notice to the clerk of a willingness to bid a higher amount.
END OF DOCUMENT
Case 11-05834-8-JRL Doc 110 Filed 02/09/12 Entered 02/09/12 12:23:38 Page 2 of 2