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In re Campbell Sod, Inc.

United States Bankruptcy Court for the District of Kansas
378 B.R. 647 (2007)

Written by Alex Ruskell, JD

Facts

Campbell Sod, Inc. (Campbell) (defendant) filed for Chapter 12 bankruptcy. Campbell also sought the court’s permission to borrow $200,000 in working capital from Irish, L.L.C. (Irish) and to secure repayment with a first security in assets that was pledged to Campbell’s principal lender, First National Bank of Wamego (First) (plaintiff). First filed suit, arguing that the new loan was unnecessary and would fail to protect First’s interests. Campbell responded that the new loan would allow Campbell to plant more crops and increase asset value, which would protect First’s interests.

Rule of Law

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Issue

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Holding and Reasoning (Nugent, C.J.)

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A summary of the majority or plurality opinion, using the CREAC method; and
The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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