Lorenzo A. Ramirez and Ramona G. Ramirez

UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEW MEXICO
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06/10/06
Lorenzo A. Ramirez and Ramona G. Ramirez
04-12390
Order Denying [165-1] Application For Allowance and Payment of Administrative
Priority Expenses in the sum of $46,490.00. by Citicapital Commercial
Corporation .
Received on: 2006-05-18 13:28:48.000
2006-05-18 00:00:00.000
2006-05-18 00:00:00.000
James Burke
Case 04-12390-s11 Doc 205 Filed 05/18/06 Entered 05/18/06 16:45:00 Page 1 of 3

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF NEW MEXICO
In re:
LORENZO RAMIREZ and
RAMONA RAMIREZ,
Debtors. 	No. 13-04-12390 S
ORDER DENYING APPLICATION FOR ALLOWANCE
AND PAYMENT OF ADMINISTRATIVE PRIORITY EXPENSE
This matter is before the Court on creditor Citicapital
Commercial Corporation’s Application for Allowance and Payment of
Administrative Priority Expense (doc 165) and the Debtors’
objection thereto. 	The parties stipulated that the facts were
not in dispute and submitted briefs which the Court has
considered. 	This is a core proceeding. 	28 U.S.C. §
1578(b)(2)(A).
The controlling fact in this case is that Citicapital’s
collateral was not used by the Debtors after the case was filed.
The collateral was available to the Debtors, but not used because
it was in disrepair. 	The Court finds that General American
Transportation Corp. V. Martin (In re Mid Region Petroleum,
Inc.), 1 F.3d 1130, 1133 (10 th Cir. 1993) controls the outcome of
this issue. 	In Mid Region Petroleum the Court of Appeals for the
Tenth Circuit ruled that the estate must receive a “real benefit”
from the transaction and that neither potential to benefit the
estate nor mere possession of collateral satisfy this
requirement. 	Id. 	Because Debtors did not use the collateral,
Citicapital is not entitled to an administrative expense claim.
In re Colorado Springs Symphony Orchestra Assoc., 308 B.R.
Case 04-12390-s11 Doc 205 Filed 05/18/06 Entered 05/18/06 16:45:00 Page 2 of 3

508 (Bankr. D. Colo. 2004), relied on by Citicapital, is
distinguishable. 	In that case the Court dealt with the
interrelationship of § 1113 with § 503(b) and § 507(a). 	Section
1113 was enacted after 503 and 507 and is a more specific statute
dealing exclusively with collective bargaining agreements. 	The
Court finds that the reasoning of this case inapplicable to the
instant case.
IT IS ORDERED that Citicapital Commercial Corporation’s
Application for Allowance and Payment of Administrative Priority
Expense is denied.
Honorable James S. Starzynski
United States Bankruptcy Judge
I hereby certify that on May 18, 2006, a true and correct copy of
the foregoing was electronically transmitted, faxed, delivered,
or mailed to the listed counsel and/or parties.
R Trey Arvizu, III
PO Box 1479
Las Cruces, NM 88004-1479
John E Farrow
PO Box 35400
Albuquerque, NM 87176-5400
Case 04-12390-s11 Doc 205 Filed 05/18/06 Entered 05/18/06 16:45:00 Page 3 of 3