One of the more effective risk-mitigation legal tools used by  senior real estate lenders is the single purpose entity borrower.  Among other things, having a single purpose, bankruptcy  remote borrower makes avoiding the risks of bankruptcy easier.  Even in bankruptcy, if the borrower is truly single purpose, and it  keeps the universe of creditors small, the senior secured lender  will have an easier time defeating any plan of reorganization  proposed by the borrower because it will control all of the  legitimate classes of creditors by virtue of th

Bankruptcy Court holds that Section 521(a)(2) is more than a mere notice statute and that a chapter 7 debtor’s stated intent to surrender real property under that provision means that a debtor must allow the mortgagee to take possession through foreclosurewWithout interference or impediment

In past print editions of Absolute Priority, we regularly reported on developments concerning the application of Bankruptcy Code provisions to the rights of landlords that lease non-residential real property to debtors operating in Chapter 11.  While these discussions typically focused on the treatment of a debtor’s rental obligations (and in particular, so-called “stub rent” owed by a debtor for the period beginning on the day that the bankruptcy petition is filed through the end of the month), considerable non-rental charges can also accrue under a lease on a postpetiti

• Landlord/Tenant: lessor did not breach commercial lease by failing to complete construction by date certain where lease did not provide date by which property was to be ready for occupation – 326-330 St. Armands Circle, LLC v. GEE22, LLC, No. 2D12-2395 (Fla.

Sales in bankruptcy court under 11 U.S.C.

Unlike real estate transactions where a lender can obtain title insurance, secured lenders are often relying upon the representations and warranties in their loan agreement and the borrower’s audited financial statements, if and when determining whether the collateral securing their loans is owned by the borrower or another pledgor.  After default, a lender may find itself in a precarious position whereby it is unable to foreclose on the collateral because it is not owned by its borrower and it does not have a pledge from the person that actually does own the property.  According

It is broadly accepted that the abbreviated deadline for a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") to assume or reject an unexpired lease of nonresidential real property with respect to which the debtor is the lessee does not apply to executory contracts or unexpired leases of residential real property or personal property.

As seen in The Community Banker

Although property obtained by a debtor after filing for bankruptcy is usually safe from creditors, a recent case from the Ninth Circuit Bankruptcy Appellate Panel allowed a Chapter 7 Trustee to sell real property obtained by the debtors post-petition.

When a chapter 7 bankruptcy case is filed, a trustee is appointed to gather and sell the debtor’s assets.  To aid in this effort, the trustee is empowered to avoid certain transfers pursuant to Bankruptcy Code sections 544 - 550.  The trustee also is empowered, pursuant to Bankruptcy Code § 542, to seek turnover of assets belonging to the estate.  The Ninth Circuit Court of Appeals recently held that a party may be required to turnover estate property even if the party is no longer in possession of such property.  See Shapiro v.