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IN RE WOODRIDGE NORTH APTS., LTD.

Bankruptcy No. 3-86-03059-LK, Adv. No. RS-87-0050-LK.

71 B.R. 189 (1987)

In re WOODRIDGE NORTH APTS., LTD., a California Limited Partnership, Debtor.

United States Bankruptcy Court, N.D. California.

March 18, 1987.

Attorney(s) appearing for the Case

Barry Milgrom, Rosenblum, Parish & Bacigalupi, A Professional Corp., San Francisco, Cal., for debtor.

Peter J. Gurfein, Morrison & Foerster, San Francisco, Cal., for creditor Integrated Building Corp. Ltd.

Leslie Tchaikovsky, Dinkelspiel, Donovan & Reder, San Francisco, Cal., for creditor M.R. Associates.

Ellen A. Carroll, Brobeck, Phleger & Harrison, San Francisco, Cal., for Western Sav. Ass'n.

OPINION

THOMAS E. CARLSON, Bankruptcy Judge.

Section 1111(b)(1)(A) of the Bankruptcy Code1 provides that a nonrecourse deficiency claim must be treated as a recourse claim under a chapter 11 plan, unless the collateral is sold under section 363 or under a chapter 11 plan of reorganization.2 The controlling issue in this proceeding is whether the "sale exception" to the general rule of section 1111...

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