As reported by multiple news media outlets, WeWork sought bankruptcy court protection on November 6, 2023, in New Jersey while it reorganizes its debts. One of the driving forces of the bankruptcy is disclosed to be its heavy commercial lease burden, with roughly 69 of its leases on the immediate chopping block.
On November 6, 2023, WeWork Inc. and several hundred of its affiliates filed voluntary chapter 11 cases in the US Bankruptcy Court for the District of New Jersey. According to a press release issued simultaneously with the filings, WeWork also intends to file recognition proceedings in Canada under Part IV of the Companies’ Creditors Arrangement Act. The press release also states that WeWork’s locations outside of the United States and Canada are not part of the reorganization process.
After years of litigation involving state, federal, Irish, and (to a lesser extent) Swiss law; transfers of numerous assets, including Ireland’s priciest-personal residence; a jury trial; and extensive post-trial briefing, the Second Circuit made short shrift of a former real estate mogul and his ex-wife’s appeal of a judgment rendered against them for fraudulent conveyances.
Recently, in the case of Vishal Chelani & Ors. v. Debashis Nanda (Civil Appeal No. 3806 of 2023), India’s Supreme Court (SC) ruled on the interface of the Insolvency and Bankruptcy Code, 2016 (IBC) with the Real Estate (Regulation and Development) Act, 2016 (RERA).
Factual background
许多企业在生产经营过程中，将名下特定财产出租收取租金的同时，也在该特定财产上设定抵押以增加融资渠道。这类企业进入破产程序后，抵押权人虽仍对该特定财产享有优先受偿权，但受到漫长冗杂的破产程序影响，抵押权人权利的实现或多或少会受到一定程度的限制或拖延。而与此同时，特定财产在企业进入破产程序后可能仍在继续产生租金、占用费等法定孳息。抵押权人能否享有并以何种形式享有这部分法定孳息呢？这一问题既关系到抵押权人权利的保护，也关系到全体债权人的公平受偿，有必要进行深入研究，本文的探讨即由此展开。
一、问题的提出之实践案例场景
情景一：【债务人以自有财产提供抵押，债务人进入破产程序】甲公司向乙公司借款，同时作为担保，甲公司将其所有的大楼抵押给了乙公司；日常经营中，甲公司将大楼出租并收取租金。随后，乙公司因甲公司逾期还款起诉甲公司并申请法院对大楼采取了保全措施；最终，甲公司因无法清偿到期债务进入破产程序，管理人接管后，决定对大楼的租赁合同继续履行。甲公司进入破产程序后，乙公司及时向管理人申报了债权并说明了债权的担保情况，最终，人民法院裁定确认乙公司系甲公司的有财产担保债权人。
Welcome to The Week That Was, a round-up of key events in the construction sector over the last seven days.
What's in a name?
A judge has found that insurers were liable to indemnify an insured despite its insurance policy specifying the incorrect name.
The case relates to 'The George in Rye' pub which was damaged by a fire in July 2019. While the named insured was “George on High Ltd t/a The George in Rye”, a separate company (George on Rye Ltd (GoR)) owned the restaurant and hotel business operating in the property.
ICC Judge Mullen’s decision in Sunset Ltd & Anor v Al-Hindi [2023] EWHC 2443 (Ch) emphasises the importance of ensuring the existence of a debt capable of forming the basis of a bankruptcy petition at the time of presentation.
The petition in this case was presented against Mr Al-Hindi by Sunset Limited and Morville Limited on 23 June 2022 based on his failure to comply with statutory demands dated 29 March 2022 claiming £248,750 said to be due by way of unpaid rent under leases of four London properties.
Early engagement, targeted information requests and use of the court's disclosure powers may assist consideration of whether to support or oppose a plan
Since their introduction in 2020, restructuring plans have become increasingly common in the retail and consumer sectors, including fitness centres (Virgin Active and Fitness First), casual dining (Prezzo) and, most recently, in greeting cards and gifting (Clintons).
The U.S. Court of Appeals for the Eleventh Circuit recently held that the anti-modification provision in the federal Bankruptcy Code applies to loans secured by mixed-use real properties, such as the large parcel at issue here which functioned both for commercial use and as the debtor’s principal residence.
A copy of the opinion in Lee v. U.S. Bank National Association is available at: Link to Opinion.
The BRG Corporate Finance Key Economic Data Report reviews GDP and consumer confidence; inflation and real earnings; employment; housing; auto sales and production; retail sales; interest rates; high-yield index; bankruptcies; defaults; and commodity prices.
Read the reports from 2024: