Nonresidential Leases: What Does It Take To Avoid Deemed Rejection?

Posted on August 19, 2015 by BankruptcyRealEstateInsights

In re Simbaki, Ltd., 520 B.R. 241 (Bankr. S.D. Tex. 2014) –

A chapter 11 debtor sought to assume a restaurant lease.  The landlord objected, arguing among other things that the lease was not timely assumed and so was deemed rejected. Continue reading →

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Chapter 11 Sales: Believe It Or Not, There Really Are Limits

Posted on August 12, 2015 by BankruptcyRealEstateInsights

In re P.D.M. Co., 523 B.R. 558 (Bankr. W.D. Mich. 2015) –

Two affiliated chapter 11 debtors sought court approval of a sale of all of their assets out of the ordinary course of business free and clear of claims.  The bankruptcy court questioned various aspects of the proposed transaction and declined to approve the sale. Continue reading →

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Officer/Director Breach of Duty: If Things Get Bad Enough, There May Be Recourse

Posted on August 5, 2015 by BankruptcyRealEstateInsights

Official Comm. of Unsecured Creditors v. Baldwin (In re Lemington Home for the Aged), 777 F.3d 620 (3rd Cir. 2015) –

The debtor was a nonprofit corporation that operated a nursing home.  The chapter 11 unsecured creditors committee brought proceedings against former officers and directors.  Eventually a judgment was entered finding the defendants liable for breach of fiduciary duties and deepening insolvency, and imposing punitive damages against the officers and some of the directors.  The defendants appealed to the 3rd Circuit. Continue reading →

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Credit Bidding: Not An Absolute Right (And What Does That Mean?)

Posted on July 29, 2015 by BankruptcyRealEstateInsights

In re RML Dev., Inc., 528 B.R. 150 (Bankr. W.D. Tenn. 2014) –

A mortgagee sought to modify a sale order to (1) modify the bid procedures and (2) confirm that it had a right to credit bid. Continue reading →

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Claim Amount: It Pays To Pay Attention

Posted on July 22, 2015 by BankruptcyRealEstateInsights

In re Walker, 526 B.R. 187 (E.D. La. 2015) –

The bankruptcy court (1) denied a mortgage lender’s request to file a late amendment to a proof of claim that had been filed on its behalf by the debtor and (2) confirmed the debtor’s proposed plan over the mortgagee’s objection that the plan payments were not sufficient to cure the actual arrearage. The lender appealed to the district court. Continue reading →

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Good Faith Deposit: Who Gets To Keep the Cash?

Posted on July 15, 2015 by BankruptcyRealEstateInsights

Lawrence v. Commonwealth of Ky. Transportation Cabinet (In re Shelbyville Road Shoppes, LLC), 775 F.3d 789 (6th Cir. 2015) –

A chapter 7 trustee sought return of a “good faith” deposit made prior to bankruptcy in connection with a proposed purchase of real estate.  The bankruptcy court found against the trustee, as did the district court.  So the trustee appealed to the 6th Circuit. Continue reading →

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