Bankruptcy Sales: “It Ain’t Over ’Til It’s Over”

Posted on January 20, 2015 by BankruptcyRealEstateInsights

Great Plains Royalty Corp. v. Earl Schwartz Co. (In re Great Plains Royalty Corp.), 520 B.R. 292 (Bankr. D. N.D. 2014) –

Two companies that acquired assets in a bankruptcy auction moved to reopen the case to clarify ambiguities in the conveyance documents.  After the case was reopened, the debtor commenced an adversary proceeding to resolve disputes regarding the legal status of certain of the assets.  An interesting twist:  the sale that gave rise to this decision took place 45 years ago in 1969. Continue reading →

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Proof of Claim: Foreign Qualification Requirements May Be More Important Than You Thought

Posted on January 16, 2015 by BankruptcyRealEstateInsights

In re Flex Fin. Holding Co., 518 B.R. 891 (Bankr. D. Kan. 2014) –

A landlord filed a proof of claim for ~$1.34 million for a debtor’s prepetition breach of its lease.  The debtor objected based on the landlord’s failure to qualify to do business in the state where the leased property was located – arguing that this provided a defense to the claim under nonbankruptcy law and the landlord lacked the capacity to file the claim. Continue reading →

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UCC Collateral Description: More May Not Be Better

Posted on January 13, 2015 by BankruptcyRealEstateInsights

Ring v. First Niagara Bank, N.A. (In re Sterling United, Inc.), 519 B.R. 586 (Bankr. W.D.N.Y. 2014) –

A chapter 7 trustee sought to recover as preferences payments made by the debtor to a lender and proceeds of collateral liquidation received by the lender based on arguments regarding whether UCC financing statements adequately perfected the lender’s security interests. Continue reading →

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Prepetition Stay Waivers: Which Way Is The Wind Blowing?

Posted on January 9, 2015 by BankruptcyRealEstateInsights

In re Triple A & R Inv., Inc., 519 B.R. 581 (Bankr. D. P.R. 2014) –

A mortgagee moved for relief from the automatic stay based on the debtor’s prepetition consent to stay relief.  The debtor argued that a prepetition waiver was unenforceable. Continue reading →

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Delinquent Property Tax Collection: Dancing Around the Automatic Stay

Posted on January 6, 2015 by BankruptcyRealEstateInsights

In re Killmer, 513 B.R. 41 (Bankr. S.D.N.Y. 2014) –

After reopening a bankruptcy case, a mortgagee moved for a determination that a post-petition delinquent property tax sale was void because it was held in violation of the automatic stay.  In response, the tax authority requested retroactive annulment of the stay. Continue reading →

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Construction Contracts: Nothing Beats a Meeting of the Minds

Posted on December 30, 2014 by BankruptcyRealEstateInsights

Waldschmidt v. Singletary Construction LLC (In re Tackett), 516 B.R. 498 (Bankr. M.D. Tenn. 2014) –

A bankruptcy trustee sought turnover of profits from the sale of homes constructed by a contractor.  The trustee contended that there were contracts between the debtor and the contractor pursuant to which the debtor agreed to reimburse the contractor for its costs plus pay a $15,000 contractor’s fee for each home. Continue reading →

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