Real Estate Bankruptcies: The Impact of In re General Growth
Strategies for Real Estate Companies, Lenders and Investors Dealing With Special Purpose Entities
Recording of a 90-minute CLE webinar/teleconference with Q&A
Conducted on Wednesday, November 4, 2009
Recorded event now available
This seminar will discuss the bankruptcy litigation and rulings to date in General Growth Properties, the impact of the case for special purpose entities and the commercial mortgage based securities market, and best practices for lenders and debtors in real estate bankruptcy reorganizations.
Description
The General Growth Properties (GGP) bankruptcy case may be a precedent-setting bankruptcy case for the next wave of commercial real estate bankruptcies. At issue are bankruptcy filings by GGP’s special purpose entities (SPEs), many of which were solvent and not in danger of default.
The status of SPEs was tested in several key rulings. The court allowed GGP to access the cash collateral of its SPEs and denied property lenders' motions to dismiss the SPEs. The court also addressed fiduciary duties of directors and officers of solvent SPEs to its lenders and equity holders.
As the GGP case progresses, the court is expected to address a number of key legal issues in real estate financing. Issues such as substantive consolidation and classification and treatment of secured, mezzanine and unsecured debt are all sure to be tested.
Listen as our authoritative panel of bankruptcy attorneys discusses the precedent-setting developments in the GGC case thus far and analyzes the impact of these rulings on real estate financing.
Outline
- Overview of General Growth Properties bankruptcy rulings
- Cash collateral and adequate protection for secured lenders
- DIP financing
- Authority of SPEs to file bankruptcy
- Bad faith bankruptcy filings
- Fiduciary duties of SPE officers and directors
- Unique Issues in Real Estate Bankruptcies
- Single asset real estate
- “Bad boy” guaranties
- Substantive consolidation
- Cram-down risks
- Second lien (mezzanine) loans
- Restructuring strategies for REITs, SPEs and their secured lenders
- Strategies for changes in CMBS and other financing structures
- In-court strategies to address issues arising out of the current financial crisis
- Up-to-date developments in other recent cases and restructurings
Benefits
The panel will review these and other key questions:
- 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 lessons can be learned from General Growth Properties on structuring special purpose entities to avoid having to file bankruptcy under such circumstances?
Faculty
Lorraine S. McGowen,
Partner
Orrick Herrington & Sutcliffe, New York
She has practiced in the areas of creditors' rights and bankruptcy for over 20 years, focusing on enforcement of creditors' rights and remedies in out-of-court workouts and bankruptcy proceedings. She represents formal and ad hoc creditors' committees, secured and unsecured creditors and other significant parties in complex bankruptcy cases, corporate restructurings and other insolvency matters.
Michael E. Foreman,
Of Counsel
Haynes & Boone, New York
He has more than 20 years of financial restructuring and bankruptcy experience, representing secured and unsecured lenders and creditors, acquirers of and investors in distressed assets, and reorganizing of financially distressed companies, in many of the nation's largest and most complex restructurings. He also provides bankruptcy counseling in the areas of structured financing and securitization.
Harold Bordwin,
Managing Director and Group Head
KPMG Corporate Finance, New York
He serves as a Managing Director and Co-Group Head of the Real Estate Services Team focusing on real estate acquisitions and dispositions, real estate financing and sale lease back services, real estate lease related services, including negotiation, modification and termination of leases. He has nearly 20 years of real estate consulting and transactional experience.
Ordering
Online CLE - Audio Recording
Includes audio streaming of full program plus handouts (available 24 hours after live seminar).
CLE:
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Online CLE Audio $149.00
Available 24 hours after the live event
Recorded Event
Includes full event recording plus handouts (available after live seminar).
CLE: Pre-approved for self-study credit in: AK, AZ, CA, CT, HI, MO, MT, NY, TX*, VT, WA, WV. Upon request, self-study credit is also available in: CO, FL, GA, 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. (*Indicates that Strafford needs to process the CLE — see below to purchase this option.)
Webinar Download (Audio + Slide Presentation) $49.00
Available three business days after the live event
Webinar on DVD (Audio + Slide Presentation) $49.00
plus $9.45 S&H
Available ten business days after the live event
MP3 Download (Audio Only) $49.00
Available 24 hours after the live event
Teleconference on CD (Audio Only) $49.00
plus $9.45 S&H
Available ten business days after the live event
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CLE Credit
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Customer Reviews
The seminar was very insightful with a terrific grasp of the relevant case law and legal issues.
Gregory Fox
Friedman Kaplan Seiler & Adelman LLP
The program was very thorough, stayed on topic and was well organized.
Thad Wilson
King & Spalding LLP
The webinar was very informative on very pertinent matters and had a good flow.
Noam Wiener
Allen & Overy LLP
The program material was very well organized and thorough.
Laura Buckley
Higgs, Fletcher & Mack
I liked that the speakers had great knowledge of the topic and presented it with ease without making it overly complicated or rushing through the material.
Laura S. Brooks
Law Office of Laura S. Brooks
Bankruptcy Law Advisory Board
Partner
Nixon Peabody
Partner
Potter Anderson & Corroon
Of Counsel
Haynes & Boone
Shareholder
Greenberg Traurig
Partner
Dechert
Shareholder
Vedder Price
Partner
Nixon Peabody
Partner
Kaye Scholer
Counsel
Skadden Arps Slate Meagher & Flom
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