Recently, we’ve been seeing debtors try to confirm cram down plans of reorganization that are unfavorable to the secured creditor by “gerrymandering” the class of unsecured claims. The typical situation finds the secured creditor holding an undersecured loan. Under Section 506(a) of the Bankruptcy Code, the secured creditor’s claim is automatically bifurcated into a secured […]
Ben Young’s article, “Double Bogie: Bank’s Security Interest in Green Fees Cut Off by Club’s Bankruptcy,” was published by Jim Butler’s Hotel Law Blog, and picked up by Hotel Online and Hospitality Net.
A good workout professional also knows how to help the Bank make loans that are properly structured. Many of the “sad” stories we have recently experienced were the result of a huge decrease in property values, but several arose out of mistakes made in underwriting and structuring loans. Well-run institutions are taking care to be […]
Assignments for the benefit of creditors are a terrific tool to facilitate the liquidation of assets of a failing enterprise. In this article, my partner, Ben Young, explains why a recent opinion from the California Fourth District Court of Appeal missed the point and why ABCs remain a powerful tool available to get the bank […]