In re Flores de New Mexico, Inc.
United States Bankruptcy Court for the District of New Mexico
151 B.R. 571 (1993)
- Written by Sheryl McGrath, JD
Facts
Flores de New Mexico, Inc. (Flores) (debtor) was in the business of raising roses for cut flowers. The business included 60,000 rose bushes planted in the ground in three greenhouses constructed by Flores. Flores also raised other flowers and some container plants. The business was on 28 acres that Flores subleased from the University of New Mexico. The sublease agreement stated that Flores could remove corporation personalty when the sublease ended. Banda Negra International, Inc. (Banda) (creditor) loaned about $1 million to Flores. A recorded security agreement identified Banda as the secured party and listed the collateral as Flores’s equipment and accounts receivable. Subsequently, Flores filed a bankruptcy petition, and the bankruptcy court granted Flores, as debtor-in-possession, the authority to sell some of Flores’s assets, subject to liens and encumbrances. Banda asserted a security interest in the rose bushes. Flores filed a complaint objecting to Banda’s assertion of the security interest. The evidence established that the rose bushes had roots a few feet deep, that the bushes produced flowers for cutting periodically, and that the bushes lived about seven years.
Rule of Law
Issue
Holding and Reasoning (McFeeley, C.J.)
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