Case Name: UNITED STATES of America v. BURGESS WHOLESALE MFG. OPTICIANS, INC., an Illinois Corporation
Court: United States District Court for the Northern District of Illinois
Jurisdiction: United States
Decision Date: 1982-06-01
Citations: 24 B.R. 554
Docket Number: No. 82 C 1507
Parties: UNITED STATES of America v. BURGESS WHOLESALE MFG. OPTICIANS, INC., an Illinois Corporation.
Judges: 
Reporter: West's Bankruptcy Reporter
Volume: 24
Pages: 554–554

Head Matter:
UNITED STATES of America v. BURGESS WHOLESALE MFG. OPTICIANS, INC., an Illinois Corporation.
No. 82 C 1507.
United States District Court, N.D. Illinois, E.D.
June 1, 1982.
Robert L. Handros, Dept, of Justice, Washington, D.C., for plaintiff.
Roy R. Moscato, Chicago, Ill., for defendant.

Opinion:
LEIGHTON, District Judge.
This cause is before the court on the appeal of the United States of America from the January 19, 1982 order, 16 B.R. 733, of the Bankruptcy Court overruling the government's objection to the confirmation of a reorganization plan. The Government, a holder of a priority unsecured claim, objected because the plan did not provide for interest on the deferred payment of its allowed tax claims. The government contends that 11 U.S.C. § 1129(a), (c), payment by the debtor of post petition interest on a dischargeable, unsecured tax claim. The Bankruptcy Court, in a well-reasoned and thorough opinion, ruled that it did not. This court after reviewing the parties' submissions and the relevant law agrees. 11 U.S.C. § 502(b)(2), expressly prohibits the allowance of claims for unmatured interest. The cases cited by the Government are in-apposite, as they deal with secured creditors under Chapter 13. Accordingly the ruling of the Bankruptcy Court is affirmed.