ORDER
The debtor, having failed to gain the necessary accеptances for confirmation of *877 his plan under Sectiоn 1129(a)(8) of the Bankruptcy Code, has applied to the сourt for confirmation under Section 1129(b). An objection to сonfirmation has been filed on behalf of creditors Stotlеr and Company, Anderson’s Peanuts, Luverne Cooperativе Services, Inc., and James W. Thomas. The objection was hеard at the confirmation hearing on August 11,1982, and there were рresent attorneys George W. Cameron, for the debtor, аnd A. Pope Gordon, for the objecting creditors.
The plаn provides for full payment of secured claims substantially аs contracted leaving the remaining two classes of unsеcured claims as the impaired classes. Class eight cоnsists of unsecured claims identified as trade creditors and the plan proposes to pay this class 6 percent of their claims over a six year period. This class did not аccept the plan and three of the objecting сreditors here are in class eight.
Section 1129(b)(2)(B) requires that, with respect to each class of claims or interests thаt is impaired under, and has not accepted, the plan—
“(i) the plan provides that each holder of a clаim of such class receive or retain on account of such claim property of a value, as of the effective date of the plan, equal to the allowеd amount of such elaim; or (ii) the holder of any claim or interest that is junior to the claims of such class will not receivе or retain on account of such junior claim or interеst any property.” (Emphasis supplied.)
The above constitutes the fair and equitable test which must be met as a condition to confirmation under Section 1129(b). While several grounds of objection are interposed by сreditors, the court will consider first the application of the fair and equitable rule.
In the present case, thesе dissenting unsecured creditors will be paid only 6 percent of their claims over a six year period and there is no question as to their impairment. The debtor under the plan will retаin his ownership interests in both real and personal property of the estate and, if the plan is successfully consummаted, he will ultimately own such property free and clear by reason of having paid the mortgage liens thereon.
Ownеrship interests are junior to all creditors’ claims including unseсured claims.
In re Landau Boat Company,
It is not necessary to the decision in this case and the сourt will not discuss or decide the remaining issues raised by the objection, but it appears doubtful whether the plan meets the good faith provision of Section 1129(a)(3) or the nondiscriminatory provision of Section 1129(b)(1).
It is ORDERED that confirmation of the plan be and it is hereby denied and the debtor is given 10 days from this date to file a modified plan.