IN RE CAMINO REAL LANDSCAPE MAINT. CONTRACTORS

Nos. 86-6165, 86-6174, 86-6310.

818 F.2d 1503 (1987)

In re CAMINO REAL LANDSCAPE MAINTENANCE CONTRACTORS, INC., Debtor. UNITED STATES of America, Plaintiff-Appellant, v. CAMINO REAL LANDSCAPE MAINTENANCE CONTRACTORS, INC., Defendant-Appellee. In re HADRIAN CONSTRUCTION, INC., Debtor. UNITED STATES of America, Plaintiff-Appellant, v. HADRIAN CONSTRUCTION, INC., Defendant-Appellee. In re ARMOUR OIL COMPANY, Debtor. UNITED STATES of America, Plaintiff-Appellant, v. ARMOUR OIL COMPANY, Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided June 5, 1987.


Attorney(s) appearing for the Case

Raymond W. Hepper, Washington, D.C., for plaintiff-appellant.

Diane H. Sparrow, Richard R. Ravreby, Carlsbad, California, David S. Kupetz, Los Angeles, California, for defendants-appellees.

Before SNEED, BOOCHEVER and THOMPSON, Circuit Judges.


SNEED, Circuit Judge:

These three cases, arising out of chapter 11 reorganizations, pose a single issue. That is, what rate of interest on deferred payments of federal taxes will provide the government with payments having a present value equal to the allowed amount of its claim, as required by 11 U.S.C. § 1129(a)(9)(C). We hold that the debtor must pay the government interest at the rate the debtor would pay a commercial lender for a loan of equivalent amount...

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