When a chapter 7 debtor redeems following conversion from chapter 13, under 11 USC 348(f)(1)(B) the redemption amount is the amount at which the allowed secured claim was valued in the confirmed chapter 13 plan.

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Braude Jewelry filed chapter 11 and successfully confirmed its plan, including assumption of two leases. Within a year, Reorganized Braude filed a new liquidating chapter 11. After accomplishing certain actions — including rejecting those assumed leases — Braude II was dismissed. Meanwhile, the UST moved to convert Braude I to Chapter 7 and a trustee was appointed. The landlords whose leases were assumed in Braude I and rejected in Braude II filed claims in Braude I, seeking administrative priority for the claims arising from the breach of their leases. The IRS also filed a claim in Braude I, seeking allowance of a claim based on penalties for unpaid withholding and FICA taxes incurred during Braude II’s post-petition business operations. The Braude I trustee filed an omnibus objection to claims. Held: Objections overruled and (1) landlords’ claims allowed with administrative priority and (2) IRS claim allowed as a priority unsecured claim.

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