In The Matter Of Texas Grand Prairie Hotel Realty, L.L.C.,
710 F.3d 324 (5th Cir. 2013)
Facts
In 2007, Prairie (P) obtained a $49,000,000 loan from Morgan Stanley Mortgage Capital, Inc., applying the proceeds to acquire and renovate four hotel properties in Texas. D eventually acquired the loan from Morgan Stanley. In 2009, P filed Chapter 11 and proposed a plan of reorganization. D rejected the proposed reorganization. P sought to cram down their plan under §1129(b). The plan valued the secured claim at $39,080,000. P proposed to pay over a term of ten years, with interest accruing at 5%. This was 1.75% above the prime rate on the date of the confirmation hearing. Both parties stipulated that the applicable rate should be determined by applying the 'prime-plus' formula endorsed by a plurality of the Supreme Court in Till v. SCS Credit Corp. P's expert testified that it supported a 5% rate. D's expert testified to at least 8.8%. D filed a Daubert motion seeking to strike P's testimony under Rule 702, insisting that the failure to correctly apply Till and its progeny shows that P's expert's methodology is flawed, does not comport with applicable law, and is unreliable. The motion was denied. D appealed. The district court affirmed. D appealed. P has moved to dismiss the appeal as equitably moot.
Nature Of The Case
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Holding & Decision
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Legal Analysis
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