In re Stacy’s, Inc., 508 B.R. 370 (Bankr. D. S.C. 2014) –
A debtor sold substantially all of its assets after negotiating with its primary secured creditor for carve-outs from the sale proceeds for administrative priority and general unsecured claims. When the administrative claims turned out to be greater than anticipated, the debtor sought court approval to use additional proceeds to pay income tax and other claims. Continue reading
Three affiliated debtors (RMI, CBTC and CBI) proposed a plan of reorganization that, among other things, required transfer of the collateral (interests in a tennis resort) of an objecting undersecured lender (Colony Lender) free and clear of its liens in exchange for either an unspecified payment or return of the collateral after one year. The convoluted ownership structure of the resort and treatment of the lender’s claims gave rise to a variety of related questions. Continue reading
In re SR Real Estate Holdings, LLC, 506 B.R. 121 (Bankr. S.D. Cal. 2014) –
A group of lenders moved to dismiss the debtor’s bankruptcy case on the basis that it was filed in bad faith, or in the alternative asked the court to find that the debtor was a “single asset real estate” and then to grant the lenders relief from the automatic stay. Continue reading
Kellner v First Ohio Banc & Lending, Inc. (In re Geraci), 507 B.R. 224 (Bankr. S.D. Ohio 2014) –
A Chapter 13 trustee and the debtor sought to use the strong arm powers of a hypothetical bona fide purchaser of real estate to avoid a mortgage based on the fact that an incorrect legal description was attached to the mortgage and it was indexed in the land records using the incorrect description. Continue reading
In re NNN Parkway 400 26, LLC, 505 B.R. 277 (Bankr. C.D. Cal. 2014) –
The primary creditor (an undersecured lender) objected to the debtors’ proposed plan of reorganization on various grounds, including that the plan violated the “absolute priority rule,” its deficiency claim was improperly put in a separate class from other unsecured creditors, the plan was not feasible, and in essence the plan involved a sale of the property which meant that the lender had a right to submit a credit bid. Continue reading
In re New Bride Missionary Baptist Church, 509 B.R. 85 (Bankr. E.D. Mich. 2014) –
After the bankruptcy court denied confirmation of a debtor’s proposed chapter 11 plan of reorganization because there was no accepting impaired class, the debtor proposed an amended plan that placed a mortgagee’s large deficiency claim in one class and claims of other unsecured creditors in a separate “administrative convenience” class. Continue reading
Bankruptcy-RealEstate-Insights 