In Re Devlin

185 B.R. 376 (1995)

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Nature of the Case

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Facts

P is the operator of a 220-room resort motel in Daytona Beach, Florida. The current air conditioning system needs immediate replacement along with the boiler and hot water heaters. P has requested authority to obtain financing to replace these items. P solicited bids and determined that the minimum cost of replacing these units is $123,920. P does not have the funds and must obtain outside financing to replace these items. Irene L. Devlin, P's mother, has agreed to provide such financing contingent on her receiving a first priority lien on the real property where the hotel is located. Legal title is vested in Nat Max & Associates (D), a Florida general partnership. D has opposed the assumption of the purchase and sale contract and the proposed plan of reorganization. Notice of the proposed financing was circulated to all creditors and parties in interest all were given time to serve objections. No written objections were served. The hotel is encumbered by a first priority mortgage lien held by the Resolution Trust Corporation (RTC) to secure a debt of approximately $ 2.3 million.