BofA Files $50M Objection To Neumann Plan

Law360, New York (January 21, 2010, 1:21 PM EST) -- Bank of America NA has balked at defunct Chicago homebuilder Neumann Homes Inc.'s liquidation plan, which the bank says could leave as much as $50 million in loans unsecured by liens.

As is, Neumann's plan does not satisfy the Bankruptcy Code, Bank of America said in an objection filed Wednesday in the U.S. Bankruptcy Court for the Northern District of Illinois.

Neumann's plan requires that the bank choose between two unpalatable options: either accept a transfer of collateral in a “manner acceptable to the debtors” —...
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