In a recent pair of decisions, the Ninth Circuit Bankruptcy Appellate Panel held that even fully secured creditors with nonrecourse claims and unsecured creditors who are paid off after the involuntary petition may qualify as...more
A typical receivership order does not limit the ability of a managing member to seek limited liability company bankruptcy relief for distressed real estate or other enterprises.
An enterprise, even if in receivership,...more
A recent bankruptcy court decision determined that a debtor cannot reject an unexercised option for the purchase of its real estate, raising a potentially significant bar to any debtor extricating itself from an under-market...more
An oversecured creditor can recover default interest where the sole default trigger was the borrower’s bankruptcy filing after considering all relevant equitable considerations.
While Bankruptcy Code section 506(b)...more
New York bankruptcy court breaks with precedent and endorses time approach for calculating lease termination damages over rent amount approach, resulting in smaller claims for landlords.
Time approach limits, and often...more
Congress introduces legislation to extend the $7.5 million debt ceiling for Subchapter V eligibility for an additional year to March 27, 2022.
Subchapter V was designed to be a cost-effective distress tool for small...more
While the recent Bankruptcy Code amendments allow small business debtors to extend their deferral of lease obligations beyond the first 60 days of the bankruptcy case, the amendments raise and leave unanswered important...more
1/27/2021
/ Bankruptcy Code ,
Bifurcation ,
CARES Act ,
Chapter 11 ,
Commercial Leases ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Debtors ,
New Amendments ,
Small Business ,
Small Business Reorganization Act of 2019 (SBRA)
A recent Chuck E. Cheese decision rejects the debtor’s/tenant’s request to avoid paying rent based upon state law equity arguments.
CEC’s leases expressly do not permit rent relief even if force majeure is triggered....more
A recent Chuck E. Cheese decision denies the debtor’s/tenant’s request to defer paying rent after the 60-day “rent holiday.”
The Bankruptcy Court applied the “plain language” rule to hold that section 365(d)(3)’s rent...more
“Can an unsecured creditor be better off when the debtor defaults rather than paying off the debt? Yes: Law can be stranger than fiction in the Preference Zone.”—Ninth Circuit
Untimely payment by tenants and other obligors...more
8/20/2020
/ Appeals ,
Bankruptcy Appellate Panel (BAP) ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Chapter 7 ,
Commercial Tenants ,
Debtors ,
Default ,
Landlords ,
Late Payments ,
Letter of Credit ,
Preferential Transfers ,
Reversal ,
Security Deposits ,
Unsecured Debt
Lenders should plan for real estate owner bankruptcies despite having a non-recourse carveout guaranty triggered by the owner’s bankruptcy filing.
Real estate bankruptcies may occur despite personal guaranties because...more
Multifamily condominium regimes with mounting liabilities and unpaid dues during COVID-19 may find answers in bankruptcy to the obstacles posed by individually titled units.
We created and implemented a strategy that allowed...more
High Court review threatens to unravel Puerto Rico’s Title III bankruptcy cases.
The U.S. Supreme Court has agreed to review the First Circuit’s ruling invalidating the appointment of the members of the Puerto Rico...more