Author Archives: BankruptcyRealEstateInsights

About BankruptcyRealEstateInsights

Vicki R. Harding was a partner in the Detroit office of Pepper Hamilton LLP who moved to Arizona seeking warmer weather. Ms. Harding continues to handle commercial transactions with an emphasis on real estate and bankruptcy issues (but no longer owns a snow shovel).

“Strong Arm” Powers Round 2: This Time The Mortgage Survives

Hiraldo v. Banco Popular Depuerto Rico (In re Hiraldo), 471 B.R. 676 (D. P.R. 2012) – Hiraldo illustrates the key role that state law can play in determining the outcome of a bankruptcy case.  Despite the fact that a mortgage presented … Continue reading

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Chapter 11 Secured Loans: “Lien Stripping” Lives

In re Heritage Highgate, Inc., 679 F.3d 132 (3rd Cir. 2012) – In Heritage Highgate, the secured claims of a group of investors were valued at zero for purposes of treatment in a plan of reorganization, with the result that their … Continue reading

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Accepting Payment Before A Construction Lien Is Filed: Catch-22?

Johnson Memorial Hospital, Inc. v. New England Radiator Works (In re Johnson Memorial Hospital, Inc.), 470 B.R. 119 (Bankr. D. Conn. 2012) – Creditors of a distressed company often look for strategies to reduce bankruptcy preference exposure, and construction contractors are … Continue reading

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Bankruptcy “Strong Arm” Powers: Bye Bye Mortgage

Rhiel v. Central Mortgage Co. (In re Kebe), 469 B.R. 778 (Bankr. S.D. Ohio 2012) – Kebe provides a classic example of the exercise of bankruptcy “strong arm” powers.  Based on a defective notarization, the lien of a mortgage was avoided, and … Continue reading

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RadLAX: Supreme Court Speaks On Credit Bidding

RadLAX Gateway Health Co. v. Amalgamated Bank, __ U.S. __, 132 S. Ct. 2065, 182 L. Ed. 2d 967 (2012) – Undersecured lenders jealously guard their ability to credit bid in a sale of collateral (i.e. lender offsets the amount that … Continue reading

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TOUSA: What’s All the Fuss?

Senior Transeastern Lenders v. Official Comm. of Unsecured Creditors (In re TOUSA, Inc.), 680 Fed 3rd 1298 (11th Cir. 2012) – It would be difficult for even a casual observer to miss the uproar caused by the 11th Circuit’s decision in … Continue reading

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