Post-Petition Rent Obligations On ‘Residential’ Versus ‘Nonresidential’ Property
January 01, 2025
The lifeblood of any debtor operating in Chapter 11 is access to cash to maintain ongoing operations. This is particularly important in cases involving assisted living and skilled nursing facilities given the health, safety, and welfare concerns with respect to their residents. One of the most significant calls on cash involves post-petition rent obligations due on leased facilities.
Inconvenient Bankruptcy Appeals
December 01, 2024
Bankruptcy courts are not infallible, and their rulings should be reviewable. But too many district courts and bankruptcy appellate panels (BAPs) regularly refuse to review nonfinal bankruptcy court orders for questionable reasons.
Subchapter V Could Be Ideal Choice for Franchisees
December 01, 2024
When franchisees choose to financially reorganize under the Bankruptcy Code, they may be the right size to choose to reorganize under Subchapter V of Chapter 11. Where the franchisor and the franchisee cannot reconcile, Subchapter V may provide the franchisee with breathing room and leverage to be revitalized.
Real Property Sale Proceeds Must Be Paid First to Unavoided Portion of IRS Tax Lien
November 01, 2024
Given the downward pressure on commercial real estate valuations in many areas, and the increasing likelihood that owners of real property will cease paying real property taxes when there is no longer any equity, we decided to report on a recent decision issued by the Ninth Circuit that reversed a decision of the bankruptcy court allocating the distribution of the proceeds of a sale of real property pro rata between the IRS, on account of its tax lien, and the bankruptcy estate.