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Hari Ram, Inc. v. Magnolia Portfolio, LLC (In re Hari Ram, Inc.)

507 B.R. 114 (2014)

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Hari Ram, Inc. v. Magnolia Portfolio, LLC (In re Hari Ram, Inc.)

United States Bankruptcy Court for the Middle District of Pennsylvania
507 B.R. 114 (2014)

AR

Facts

Hari Ram, Inc. (plaintiff), a hotel owner and operator, received a mortgage from Magnolia Portfolio, LLC (Magnolia) (defendant) to build a new hotel. When Hari Ram defaulted on the loan, Magnolia demanded that Hari Ram pay Magnolia its hotel revenues from Hari Ram’s first hotel. Hari Ram responded by filing for Chapter 11 bankruptcy. Hari Ram also sought permission to use its hotel revenue that made up the cash collateral because the revenue was not part of the estate. Hari Ram claimed that Magnolia’s interest was adequately protected because the property would be profitable at the end of nine months.

Rule of Law

Issue

Holding and Reasoning (France, C.J.)

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