Bankruptcy cases involving commercial real estate present a multitude of problems. Those problems typically arise in the context of voluntary cases filed under chapter 11 of the Bankruptcy Code, 11 U.S.C. §§ 101-1532, and involve a dispute between the business debtor and its mortgage lender. As such, this Paper focuses primarily on chapter 11 of the Code, which provides for the reorganization or orderly liquidation of a debtor. Understanding each party’s rights is the backdrop for a potential workout between a lender and borrower, as it clarifies each party’s options inside and outside of an in-court process.
This Paper was originally presented at the 14th Annual Advanced Real Estate Strategies Course, hosted by the State Bar of Texas on December 10-11, 2020. The Article includes real estate topics on Bad-Faith Filings, Turnover, Mortgagee’s Use of Cash Collateral, Single-Asset Real Estate, Automatic Stay and Chapter 11 Plans. To read the full Paper, please click on the following link: Bankruptcy Topics in Distressed Real Estate.