This section contains the nature of the case and procedural background.

P filed chapter 11 and submitted a proposed reorganization plan. P's Plan provides for eight classes of claims: Four classes of secured claims (SBT, SBA, TRD, and Luna County); a class for Choice Hotels; a class for non-priority unsecured claims other than the SBA's deficiency claim; a class for SBA's deficiency claim; and an equity class. SBA has a junior lien on P's real and personal property, securing a debt of about $1,500,000. SBA's claim is treated as wholly unsecured and reclassified as a Class 7 unsecured claim. SBA's lien is stripped. Class 6, the general unsecured claims, are to be paid 75% of their claim amounts within 30 days of the effective date. Class 7, the SBA, is to be paid $25,000 on its $1,500,000 deficiency claim, within 30 days of the effective date. Both the SBA and the bank have stated in their briefs and open court that they will reject the plan. SBA claims the plan violates the prohibition against unfair discrimination.

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