Real Estate

Seventh Circuit: Termination of Lease Constitutes “Transfer” under 11 U.S.C. §§ 547 and 548

Counsel for commercial landlords should be aware of the Seventh Circuit’s recent opinion in Great Lakes Quick Lube LP v. T.D. Investments I LLP (In re Great Lakes Quick Lube LP).[1] The Seventh Circuit held that a pre-bankruptcy termination of a lease was a “transfer” to the landlord for purposes of the preferential and fraudulent transfer provisions of the Bankruptcy Code, 11 U.S.C. §§ 547 and 548.

No Such Thing as a Sure Route: The Metroplex Tackle They Never Saw Coming

The § 363 game may be changing again, at least with respect to the treatment of express easements in real property. A bankruptcy court in the Eastern District of New York called an audible earlier this year in In re Metroplex on the Atlantic LLC,[1] allowing a chapter 11 debtor to compel an objecting easement-holder to accept a monetary payout on account of his interest in real property being sold free and clear of liens under a liquidating chapter 11 plan.

Real Estate June 2016

Real Estate March 2016

In for a Penny, In for a Pound: Condominium Liens and Anti-Modification Clause of Bankruptcy Code

[1]There are legions of cases interpreting the anti-modification clause of the Bankruptcy Code in the context of stripping off, cramming down or bifurcating residential mortgages. However, when it comes to other security interests recorded against residential properties, the law is not so clear.

In re Sunnyslope Housing L.P.: Ninth Circuit Uses Foreclosure Valuation in Cramdown Where Debtor Retains Affordable Housing Apartment Complex

Section 506(a) of the Bankruptcy Code provides that a claim is secured “to the extent of the value of such creditor’s interest in the estate’s interest in such property,” and that for purposes of determining a secured claim, the value of collateral “shall be determined in light of the purpose of the valuation and of the proposed disposition or use of such property.”

HSBC Bank USA N.A. v. Zair: Debtors Cannot Vest Collateral in Secured Creditors Against Their Will

Hurricane Sandy was the deadliest hurricane in the 2012 hurricane season and the second-costliest hurricane in U.S. history. It was Sandy that came ashore on Oct. 29, 2012, with a vengeance and destroyed the Zairs’ home, which was located within the jurisdiction of the U.S. Bankruptcy Court for the Eastern District of New York.

Bankruptcy Court Authorizes Rejection of Certain Executory Contracts

On May 3, 2016, Hon. Shelley C. Chapman of the U.S. Bankruptcy Court for the Southern District of New York ruled that covenants contained in certain executory contracts do not run with the land and may be rejected pursuant to § 365 of the Bankruptcy Code. In re Sabine Oil & Gas Corp., et al. involved agreements between the Sabine Oil & Gas Corp.

Annual Spring Meeting 2016: Real Estate/Bankruptcy Taxation

Hospitality and the Tax Man: Historical Hospitality Tax Issues in Distress

Selling Other People’s Real Estate: § 363(h) Options for Trustees

Under § 363 of the Bankruptcy Code and subject to bankruptcy court approval, chapter 7 trustees have the power to sell the entire interest in property that the debtor owns with nondebtor co-owners. This unique power to sell the debtor’s and nondebtor’s interests can only be exercised by a trustee in certain circumstances and when the trustee is able to satisfy all the requirements of § 363(h) of the Bankruptcy Code.

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