Case Summary:
Chapter 7 trustee brought motion to have creditor disgorge allegedly improper payments.  Court examined stipulations entered into by the debtor while in chapter 11 and concluded that creditor had not acted improperly.  Creditor completed construction of motel project, and debtor and certain mortgage holders had opportunity to purchase property.  They were unable to do so, and that failure was unrelated to any actions of the creditor.

In a related matter, the bankruptcy court’s denial of the mortgage holders’ motion for an extension of time in which to file an appeal was affirmed by the district court.

Key Terms:
Contract Disputes