IN RE JOHNSTON

No. 92-15976.

21 F.3d 323 (1994)

In re James E. JOHNSTON, dba Johnston Enterprises, Debtor. STEELCASE INC., Appellant, v. James E. JOHNSTON and Unsecured Creditors' Committee, Appellees.

United States Court of Appeals, Ninth Circuit.

Decided April 4, 1994.

As Amended May 6, 1994.


Attorney(s) appearing for the Case

R. Dale Ginter, Dan L. Carroll, Lisa L. Ditora, Downey, Brand, Seymour & Rohwer, Sacramento, CA, for appellant.

David M. Meegan, Roberta Lindsey Scott, Moore, Meegan, Hanschu & Kassenbrock, Sacramento, CA, for appellee.

Before: WALLACE, Chief Judge, GARTH and WIGGINS, Circuit Judges.


OPINION

GARTH, Circuit Judge:

We are called upon in this case to decide: (1) the proper standard for determining when an unsecured claim may be classified separately from other unsecured claims under 11 U.S.C. § 1122(a)1; and (2) whether the absolute priority rule, codified at 11 U.S.C. § 1129(b)(2)(B), is violated whenever a debtor retains assets of the bankrupt estate before actual payment is made in full to all senior...

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