Opinion ID: 461646
Heading Depth: 2
Heading Rank: 3

Heading: Grant of Motion to Cure Defaults under 11 U.S.C. Sec. 1124.

Text: 29 At the time the bankruptcy court denied Farber and Mattingly's motion to dismiss, it granted the corporation's motion to cure the defaults under the first deed of trust pursuant to 11 U.S.C. Sec. 1124. Section 1124 provides that a class of claims or interests is impaired under a plan unless the plan: 30 (2) notwithstanding any contractual provision or applicable law that entitles the holder of such claim or interest to demand or receive accelerated payment of such claim or interest after the occurrence of a default-- 31 (A) cures any such default that occurred before or after the commencement of the case under this title.... 32 11 U.S.C. Sec. 1124 (1982) (amended by the Bankruptcy Amendments and Federal Judgeship Act of 1984, Pub.L. No. 98-353, Sec. 508, 98 Stat. 333, 385). 33 The importance to the debtor of curing defaults to make a class of creditors unimpaired is this: if a class is not impaired under a plan, then it is deemed to have accepted the plan and the debtor need not solicit votes approving the plan from that class. 11 U.S.C. Sec. 1126(f) (1982) (amended by the Bankruptcy Amendments and Federal Judgeship Act of 1984, Pub.L. No. 98-353, Sec. 510, 98 Stat. 333, 386). 34 Because the power to cure defaults under section 1124 is relevant only in the context of a plan of reorganization, an order granting the debtor the power to cure is contingent upon confirmation of the entire plan. If the plan fails to meet any of the requirements for confirmation, see 11 U.S.C. Sec. 1129(a), an order granting the debtor the power to cure will be ineffectual. Therefore, the order granting the motion to cure does not finally determine the discrete issue to which it is addressed. See In re Four Seas, 754 F.2d at 1418. Because further proceedings in the bankruptcy court will affect the scope of the order, the order is not subject to review in this court under [section 158]. Id. Consequently, we also lack jurisdiction over that portion of the district court's order affirming the bankruptcy court's grant of the debtor's motion to cure. We therefore DISMISS the appeal. Each side to bear its own costs and attorneys' fees. 6