In re Coronet Capital Co.

142 B.R. 78 (1992)

From our private database of 45,900+ case briefs, written and edited by humans—never with AI.

In re Coronet Capital Co.

United States Bankruptcy Court for the Southern District of New York
142 B.R. 78 (1992)

RW

Facts

SSD Properties Corporation (SSD) mortgaged real property to secure a loan from Coronet Capital Company (Coronet). In return for $500,000, Coronet purportedly assigned most of its interest in the mortgage to a firm called JIB (plaintiff). The assignment agreement (1) guaranteed payments to JIB at a minimum annual interest-return rate of 15 percent, whether or not SSD remained current on its mortgage payments, and (2) obligated Coronet to repay the balance of JIB’s senior interest, at the return rate, before retaining any sums received at the maturity of SSD’s loan. Although SSD later defaulted on its loan obligation, Coronet continued to pay JIB in accordance with the assignment agreement. Coronet’s creditors subsequently placed Coronet in involuntary bankruptcy, which automatically stayed actions by the creditors against Coronet’s bankruptcy estate. JIB moved for relief from the automatic stay insofar as it barred JIB from asserting the share JIB claimed to own in SSD’s mortgage. The bankruptcy trustee (defendant) opposed JIB’s motion, arguing that the assignment agreement actually documented a disguised loan rather than a true sale.

Rule of Law

Issue

Holding and Reasoning (Conrad, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 735,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 735,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 45,900 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 735,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 45,900 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership