In re Gentry (FB Property Acquisitions Property I, LLC v Gentry)

FB appealed the confirmation of the Chapter 11 plan in gentry’s bankruptcy case. The panel affirmed in part and reversed in part. It first affirmed the bankruptcy court’s factual finding that the plan was feasible holding that court reasonably relied upon the repayment plan in a related corporate bankruptcy and Gentry’s salaries in finding a reasonable prospect of successful completion of the plan. The panel noted the finding was barely compliant with relevant standards, but, met them. It reversed on Gentry’s liability as a guarantor of the corporate entities debt holding bankruptcy law does not limit a guarantor’s liability to that of the borrower as the guarantee is an independent promise and creditors can pursue remedies against the guarantor even when the debtor filed bankruptcy and under the language of the guarantee here, Gentry promised to pay even if the corporate debtor could not. The case was remanded to calculate the amount of FB’s claim and to revisit feasibility.