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 with Q&A

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Conducted on Tuesday, April 27, 2010

Recorded event now available

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Course Materials

This CLE course 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.


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.



  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


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?


Arthur J. Steinberg
Arthur J. Steinberg

King & Spalding

He is a senior financial restructuring partner with 30 years of experience representing examiners, trustees, corporate...  |  Read More

Jason B. Binford
Jason B. Binford

Haynes & Boone

He is a member of the Firm’s Bankruptcy and Business Restructuring Practice Group and is a frequent author and...  |  Read More

Scott Davidson
Scott Davidson

King & Spalding

He has substantial experience in all aspects of Chapter 11 work and has appeared in both large and small bankruptcy...  |  Read More

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