Courts Issue Increasing Number of Distressed Real Estate Decisions as Filings Increase
We are reporting on two recent decisions regarding distressed real estate bankruptcies, both of which involve rights of real estate lenders against proceeds of collateral other than the real estate itself.
December 14, 2023 at 11:31 AM
8 minute read
BankruptcyIn October we reported on a case involving a distressed real estate bankruptcy. Although interest rates may have peaked, we continue to expect a large volume of distressed real estate debtors to utilize the bankruptcy system over the next couple of years. Today we are reporting on two additional recent decisions regarding distressed real estate bankruptcies, both of which involve rights of real estate lenders against proceeds of collateral other than the real estate itself. One involves the right of a lender to assert a deficiency claim against proceeds of the bankrupt debtor's insurance policy, and the other concerns whether a debtor can use the rents derived from the property that were pledged as additional collateral for the loan.
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