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Bankruptcy and Restructuring Considerations for De-SPACed Companies

Distressed de-SPACed companies are increasingly turning to chapter 11 as a means of restructuring their debts and preserving going-concern value. Many de-SPAC mergers in 2020 and 2021 involved pre-revenue or...more

Bankruptcy Blockers in Governance Documents May Not Prevent Real Estate or Other Bankruptcies

In a recent Delaware ruling, Judge Mary F. Walrath declines to follow the Fifth Circuit and holds that “a minority shareholder has [no] more right to block a bankruptcy… than a creditor does.” Real estate and other lenders...more

Personal Guaranties May Not Deter Property Owner Bankruptcies

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

How Chapter 11 Solved One Multifamily Condo Regime’s Dual Challenges of Mounting Liabilities and Unpaid Dues

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

Navigating Bankruptcy Exposure for Landlords Arising from Anticipated Lease Terminations During COVID-19

Lease terminations may result in fraudulent transfer claims. Lease terminations should document that the tenant is receiving reasonably equivalent value in exchange for rent forgiveness, relinquishing the premises and...more

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