In an adversary proceeding, various parties asserted interests in real property that was owned by, and the sole asset of, a corporation owned by another corporation, which was owned by the debtor partnership. Debtor listed the property as an asset in its bankruptcy filings, noting that it was subject to a contract with original sellers of the property to the corporation it remotely owned. Debtor claimed that the property had been designated to it by the corporate buyer, but no record of such a transaction existed. The bankruptcy court allowed the property to be transferred to bank, debtor's principal creditor and only apparent lienholder on the property. Sellers received no notice of debtor's chapter 11 filing or of the subsequent transfer of the property. On appeal, the district court found the inclusion of the property in debtor's estate to have been a de facto substantive consolidation of debtor and its related corporation, which deprived sellers of due process by denying them any opportunity to have their claim heard on its merits. The case was remanded for further proceedings.