Manipulation of “center of main interest” to secure UK bankruptcy venue does not bar chapter 15 recognition so long as creditors are not disadvantaged. On February 24, 2025, U.S. Bankruptcy Judge Michael E. Wiles granted...more
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
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
If you really want to be released from your lease obligations and those of your assignee, you need to get a landlord release at the time of assignment.
An assignor tenant’s lease obligations survive an otherwise permitted...more
1/27/2022
/ Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Commercial Leases ,
Coronavirus/COVID-19 ,
Landlords ,
Leases ,
Material Change Doctrine ,
Pre-Bankruptcy Claims ,
Proof of Claims ,
Releases
Hospitality debtors with substantial equity but prolonged depressed revenues due to COVID-19 may find negative amortization, a tool used sparingly pre-pandemic, helpful in the restructuring of mortgage debt under a chapter 11...more
2/25/2021
/ Amortization ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Real Estate Market ,
Coronavirus/COVID-19 ,
Debt Restructuring ,
Debtors ,
Hospitality Industry ,
Mortgages ,
Recovery Plans ,
Remote Working
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
Illinois Governor’s Executive Order prohibiting sale of food or beverages for on-premises consumption held to partially excuse restaurant tenant’s rent payment obligations.
Bankruptcy Court finds that Executive Order...more
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