Real Estate Bankruptcies: Single Asset Real Estate Rules and Lessons From General Growth

Navigating Unique Issues for Defaulting Commercial Real Estate Companies

Recording of a 90-minute CLE webinar/teleconference with Q&A


Conducted on Tuesday, April 27, 2010
Recorded event now available


This CLE webinar will provide bankruptcy strategies for defaulting commercial real estate companies and their lenders. The panel will focus on the lessons learned from In re General Growth Properties and the impact of the BAPCPA amendments on single asset real estate rules.

Description

Commercial real estate companies face declining real estate values, increasing vacancy rates, and a frozen credit market that makes refinancing difficult. Deutsche Bank estimates that $1.97 trillion in commercial loans will mature between now and 2018, and many will be unable to refinance.

The General Growth Properties bankruptcy has highlighted many problems facing real estate companies. The industry is closely watching GGP's plans to modify its securitized loans, and the bankruptcy rulings in this case are instructive for future real estate bankruptcies.

Chapter 11 may not be a viable option for many real estate companies since BAPCPA removed the $4 million secured debt ceiling for single asset real estate (SARE) companies. The SARE rules are more restrictive and limit a debtor’s ability to reorganize or buy time to avoid foreclosure.

Listen as our authoritative panel of legal specialists provides bankruptcy strategies for commercial real estate debtors and lenders, discusses the impact of the GGP rulings and its reorganization plans on real estate bankruptcies, and analyzes the more restrictive rules for single asset real estate entities.

Outline

  1. Developments in In Re General Growth Properties
    1. Special purpose entities and bankruptcy remoteness
    2. Substantive consolidation
    3. GGPs reorganization plan
  2. Real estate bankruptcy issues
    1. Cash collateral and DIP financing
    2. Leases and other executory contracts
    3. Recourse guaranties
    4. Asset sales
    5. Plan confirmation issues
    6. Cramdown concerns
  3. Single asset real estate (SARE) cases
    1. BAPCPA amendments to SARE rules
    2. Automatic stay
    3. Interest payments under section 362
    4. Plan confirmation issues
    5. Cramdown hurdles

Benefits

The panel will review these and other key questions:

  • What factors determine whether the debtor's reorganization plan is feasible—and what steps can a lender take in response to a cramdown plan?
  • How can recourse guarantees in commercial loan documents deter bankruptcy filings?
  • How has the court in the General Growth Properties case addressed substantive consolidation of the special purpose entities?
  • Has the status of special purpose entities as "bankruptcy remote" been jeopardized by the rulings in the General Growth Properties case?
  • What hurdles do the SARE rules impose for real estate debtors and how do they impact the viability of Chapter 11 as a restructuring strategy?

Faculty

Arthur J. Steinberg, Partner
King & Spalding, New York

He is a senior financial restructuring partner with 30 years of experience representing examiners, trustees, corporate monitors, debtors, creditors’ committees, secured and unsecured creditors groups/individuals, distressed investors and asset buyers, and other parties in bankruptcy related litigation.

Jason B. Binford, Attorney
Haynes & Boone, Dallas

He is a member of the Firm’s Bankruptcy and Business Restructuring Practice Group and is a frequent author and speaker on a variety of bankruptcy issues.

Scott Davidson, Counsel
King & Spalding, New York

He has substantial experience in all aspects of Chapter 11 work and has appeared in both large and small bankruptcy cases. He represented the Examiner for Enron North America and Coudert Brothers. He represented debtors in the Chapter 11 case of a major retail department store and the futures representative for asbestos health claimants in the Owens Corning and USG Corporation Chapter 11 cases.

Ordering

Online CLE - Audio Recording

Includes audio streaming of full program plus handouts (available 24 hours after live seminar).

CLE: Pre-approved for participatory or non-traditional/alternate format credit in: CA, HI*, NY*, WV*. Pre-approved for self-study credit in: AK, AZ, GA, MO, MT, TX, VT, WA.
Upon request, also available in: CO, CT*, FL, ID, KY, LA*, ME, NC, ND, NE, NH, NM, NV, OR*, SC, TN, UT, WI*, WY. If you are applying for credit in one of these states, make sure to select those states when placing your order.
(*Indicates that Strafford must report attendance.)

Online CLE Audio $297.00
Available 24 hours after the live event

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Recorded Event

Includes full event recording plus handouts (available after live seminar).

CLE: Pre-approved for self-study credit in: AK, AZ, CA, CT, GA, HI, MO, MT, NY, TX, VT, WA, WV. Upon request, self-study credit is also available in: CO, FL, ID, KY, ME, ND, NE, NH, NM, NV, OR, UT, WI, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com.

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Available three business days after the live event

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DVD (Slide Presentation with Audio) $297.00 plus $9.45 S&H
Available ten business days after the live event

MP3 Download (Audio with Slide PDFs) $297.00
Available 24 hours after the live event

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CD (Audio with Slide PDFs) $297.00 plus $9.45 S&H
Available ten business days after the live event

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Program Materials

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Program Materials

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Customer Reviews

The program provided good legal references, good bullet points and good scope.

Tim Thomas

Kolesar & Leatham

I liked the combined depth of information and speed of presentation. Well done!

Andre Dalbec

SAANYS

Cutting edge information from people who are in the field.

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Donahue Tucker & Ciandella

All of the speakers were very informative, and being able to ask questions was very helpful.

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Jackson Walker

I found the content very useful and was impressed by the high quality of each speaker's ability to articulate his presentation.

Andrew Lillie

Hogan & Hartson

Bankruptcy Law Advisory Board

Mark N. Berman

Partner

Nixon Peabody

Theresa V. Brown-Edwards

Partner

Potter Anderson & Corroon

Michael Foreman

Of Counsel

Haynes & Boone

Matthew Gensburg

Shareholder

Greenberg Traurig

Brian E. Greer

Partner

Dechert

Douglas Lipke

Shareholder

Vedder Price

Victor Milione

Partner

Nixon Peabody

Michael Solow

Partner

Kaye Scholer

Robert A. Weber

Counsel

Skadden Arps Slate Meagher & Flom

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