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In a case of first impression in the circuit, the Sixth Circuit Court of Appeals has applied Federal Rule of Civil Procedure 60(b) to revoke a bankruptcy trustee's "technical" abandonment of property. LPP Mortgage Ltd. v. Brinley, 547 F.3d 643 (6th Cir. 2008). If a bankruptcy trustee files a notice of abandonment of property under §554(a) of the Bankruptcy Code, the property is irrevocably abandoned, at least when the property is scheduled or the trustee is otherwise aware that it exists. See, e.g., In re Bryson, 53 B.R. 3 (Bankr. M.D. Tenn. 1985).

Historically, a credit bid in a chapter 11 sale has frequently been viewed as a "non-sale" event, and the parties did not feel an obligation to pay an investment banker, business broker, real estate broker or auctioneer (the professional) a commission for the result. The professional's employment agreement frequently calls for payment "from the sale proceeds," and there are no cash proceeds from which to pay in the event of a credit bid.

Selling Distressed Real Estate at Auction in Today's Market

Examples of how the current economic meltdown impacts the chapter 11 landscape are many. The unavailability of debtor-in-possession financing in most cases makes maintaining cash levels that much more important during the reorganization process. The continuous decline of asset values across the board means that debtors, unsecured creditors' committees and, in some instances, subordinated secured lenders are leaving no stone unturned in the search of untapped value.

Do you remember when advertising a "bankruptcy sale" attracted legions of deal-hungry bidders? Not anymore: The game has changed. Real estate disposition now requires new techniques to drive values and timely sales.

The House Judiciary Committee approved an amendment in the nature of a substitute for H.R.

A circuit split. State vs. estate. Textualism vs. pragmatism. Despite its promise, this year's Supreme Court Bankruptcy Code interpretation bout- Florida Dept. of Revenue v. Piccadilly Cafeterias Inc., 128 S.Ct. 2326 (2008)- was relatively dull. Pragmatism entered the ring disoriented and nervous, and was quickly k.o.'ed by textualism and the certainty of taxes.

In the past, a chapter 11 debtor's counsel might have opted to take advantage of a sale of assets under §363 of the Bankruptcy Code to avoid the delays and uncertainties of the plan confirmation process.  On June 16, 2008, the U.S. Supreme Court in Florida Dept. of Revenue v. Piccadilly Cafeterias Inc. held that if a chapter 11 debtor wanted to sell property free of transfer taxes, it had to sell its assets under a confirmed plan and not merely in a §363 sale in contemplation of a plan.  ___U.S.___, 128 S.Ct.

For many businesses that operate in shopping centers, industrial complexes, office buildings or other leased property, nonresidential real property leases are often among the “crown jewels” of the company’s assets. Likewise, of critical importance to the owners and management agents of commercial real estate are the securing and maintaining of profitable, long-term, quality tenants and the shedding of tenants whose financial health has declined or who otherwise no longer fit with the lessor’s current or long-term plans for the real estate in question.

In Kelo vs City of New London,[1] the Supreme Court, by the barest of majorities, upheld the constitutionality of a condemnation of private property for the purpose of conveying it to another private party, as part of a development plan that would create jobs, increase the tax base and revitalize an economically distressed city.