Category Archives: Financing

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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What Comes After Stay Relief: The Disappearing Deficiency Claim (Round 2)

Pierce v. Carson (In re Rader), 488 B.R. 406 (9th Cir. BAP 2013) – A chapter 7 trustee objected to the unsecured deficiency claim of a mortgage lender that remained after the lender obtained relief from the automatic stay and proceeded … Continue reading

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What Comes After Stay Relief: The Disappearing Deficiency Claim (Round 1)

In re Wright, 486 B.R. 491 (Bankr. D. Ariz. 2012) – In Wright, a mortgage lender obtained relief from the automatic stay in a chapter 11 bankruptcy and proceeded with a state non-judicial foreclose sale on two properties.  However, it did … Continue reading

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Discharge Injunction Violation: Can a Lender Refuse to Foreclose, Release Its Lien, or Accept Surrender of a Property?

Canning v. Beneficial Maine, Inc. (In re Canning), 706 F.3d 64 (1st Cir. 2013) – After filing a chapter 7 bankruptcy, the debtors tried to surrender their residence to the mortgage lender.  After the bankruptcy the lender refused to accept a surrender, … Continue reading

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