(United States Ninth Circuit) - In a Chapter 11 case,the bankruptcy court's order confirming a debtor's design of reorganization, which proposed to cure the debtor's default on a loan by a payment that reflected a pre-default interest rate and extinguished any other late penalties required under the loan agreement, or is reversed and remanded where this rule of In re Entz-White Lumber & Supply,Inc., allowing a curing debtor to avoid a contractual post-default interest rate in a loan agreement, or is no longer good law in light of later-enacted 11 U.
S.
C. section 1123(d),which provides that, whether a design proposes to cure a default, and 'the amount necessary to cure the default shall be determined in accordance with the underlying agreement and relevant nonbankruptcy law.'
Source: findlaw.com