Select Bankruptcy Cases Impacting Commercial Real Estate Finance and Securitization

February 01, 2008
Several recent court decisions have had a significant impact on the finance and real estate industry. These decisions have dealt with issues involving the enforceability of repurchase agreements; waiver of the automatic stay; substantive consolidation in complex transactions; recourse carveout liability; secured creditors’ ability to recover prepayment fees, attorneys’ fees, and late fees; landlord damage claims; “true leases” of real estate; bankruptcy filings by U.S. based foreign hedge funds; “single asset real estate” entities; and co-lender claims under intercreditor agreements. This article discusses these cases, highlighting their relevance to today’s securitized finance and real estate industry.