Monthly Archives: June 2013

Credit Bid: “This Is Not Rocket Science”

Fire Eagle L.L.C. v. Bischoff (In re Spillman Dev. Group Ltd.), 710 F.3d 299 (5th Cir. 2013) – A bank made loans to the debtor to finance construction of a golf course.  The loans were secured by senior liens on the … Continue reading

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Artificial Impairment of Claims: Can The Tail Wag The Dog in Confirming a Plan?

Western Real Estate Equities, L.L.C. v. Village at Camp Bowie I, L.P. (In re Village at Camp Bowie I, L.P.), 710 F.3d 239 (5th Cir. 2013) – To confirm the debtor’s proposed plan of reorganization over the mortgage lender’s objections, the … Continue reading

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Special Purpose Entities: What Recourse Does A Lender Have When SPEs Are Consolidated Pre-Bankruptcy? … Maybe None

Fed. Nat’l Mortgage Ass’n v. Bruckner, 489 B.R. 93 (E.D. Wis. 2012) – The debtor (Buckner) owned 36 rental projects (containing ~ 1300 rental units) through various limited liability companies.  The LLCs transferred all of the properties to Buckner a few … Continue reading

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Prime-Plus Cramdown Rate: You Can Forget Market Reality

Wells Fargo Bank Nat’l Ass’n v. Texas Grand Prairie Hotel Realty, L.L.C. (In re Texas Grand Prairie Hotel Realty, L.L.C.), 710 F.3d (5th Cir. 2013) – In this case the debtors proposed a plan of reorganization for four hotel properties.  The … Continue reading

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Funding Commitment: “Inure to the Benefit of the Parties Hereto” May Not Mean What You Think It Means

Avenue CLO Fund Ltd. v. Bank of America, N.A., 709 F.3d 1072 (11th Cir. 2013) – This case involves a failed Las Vegas casino-resort development that was to be funded by revolving loans and term loans, as documented in a series … Continue reading

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Potential Claims: Don’t Forget ILSA (Federal Interstate Land Sales Full Disclosure Act)

Ross v. R.A. North Development, Inc. (In re Total Realty Management, LLC), 706 F.3d 245 (4th Cir. 2013) – Interstate land sales may be subject to registration and anti-fraud provisions under the Federal Interstate Land Sales Full Disclosure Act (ILSA).  In addition … Continue reading

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