Opinion ID: 435858
Heading Depth: 1
Heading Rank: 6

Heading: Cases on Adequate Protection

Text: 48 The early cases, decided before enactment of the Bankruptcy Reform Act of 1978, are of little relevance in construing sections 361 and 362. 8 Among the recent cases construing these sections there is a split of authority. Several courts have relied in part on Judge Hand's opinion in Murel to require adequate protection under section 361 of the present value of the secured creditor's interest. See, e.g., In re Langley, 30 B.R. 595, 603-06 (Bkrtcy.N.D.Ind.1983); Metropolitan Life Insurance Co. v. Monroe Park, 17 B.R. 934, 940 (D.C.D.Del.1982); In re Virginia Foundry Co. Inc., 9 B.R. 493, 497-98 (D.C.W.D.Va.1981); In re Anchorage Boat Sales, Inc., 4 B.R. 635, 641-44 (Bkrtcy.E.D.N.Y.1980). 49 An apparently growing number of bankruptcy courts approve the view, adopted by the bankruptcy appellate panel in this case, extending adequate protection to the value of the collateral alone. See, e.g., In re Aegean Fare, Inc., 34 B.R. 965 (Bkrtcy.D.Mass.1983); In re Shriver, 33 B.R. 176 (Bkrtcy.N.D.Ohio 1983); In re Cantrup, 32 B.R. 1004 (Bkrtcy.D.Colo.1983); In re Saypol, 31 B.R. 796 (Bkrtcy.S.D.N.Y.1983); In re South Village, Inc., 25 B.R. 987 (Bkrtcy.Utah 1982); In re Pine Lake Village Apartment Co., 19 B.R. 819 (Bkrtcy.S.D.N.Y.1982); In re Alyucan Interstate Corp., 12 B.R. 803 (Bkrtcy.Utah 1981). 9 The majority of these courts have relied heavily on the detailed, thorough analysis of Judge Mabey in South Village and Alyucan. While we appreciate the care taken in this analysis, we conclude that South Village and Alyucan accord insufficient weight to the language of the statute and the congressional goal of affording the secured creditor the benefit of its bargain.