On December 23, 2010, the Bankruptcy Appellate Panel of the 6th Circuit, upheld the Eastern District of Kentucky’s Bankruptcy Court’s order that post petition rents, revenues or other funds derived from leased real property is property of the estate under 11 U.S.C. §541 and can be used as cash collateral under 11 U.S.C. §363. However, post petition rents can be used as cash collateral only if the debtor can provide adequate protection for the use of those rents through an existing equity cushion in the property.
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USA, Insolvency & Restructuring, Litigation, Real Estate, Frost Brown Todd LLP, Bond (finance), Bankruptcy, Debtor, Collateral (finance), Commercial property, Limited liability company, Debt, Mortgage loan, Default (finance), Secured creditor, United States bankruptcy court, Bankruptcy Appellate Panel
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