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In re Triple A & R Capital Investment, Inc.

519 B.R. 581 (2014)

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In re Triple A & R Capital Investment, Inc.

United States Bankruptcy Court for the District of Puerto Rico
519 B.R. 581 (2014)

AR

Facts

PRLP 2011 Holdings LLC (PRLP) (plaintiff) executed a forbearance agreement with Triple A & R Capital Investment, Inc. (Triple) (defendant), a single-asset debtor-in-possession. The agreement included a waiver of a Chapter 11 automatic stay. Later, Triple affirmed the waiver in an amended forbearance agreement. Triple declared Chapter 11 bankruptcy, and PRLP filed a motion for relief from the automatic stay based on the waiver. After the order for relief was granted, PRLP and Triple entered into a “Joint Stipulation for Interim Use of Cash Collateral and Adequate Protection.” The stipulation was approved by the court and included a ratification of Triple’s prepetition waiver. PRLP again moved to have the stay lifted, and Triple argued that the waiver was unenforceable.

Rule of Law

Issue

Holding and Reasoning (Tester, J.)

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