• Bankruptcy in Real Estate: What to Do When Faced with Foreclosure?

  • Sep 12 2024
  • Duración: 32 m
  • Podcast

Bankruptcy in Real Estate: What to Do When Faced with Foreclosure?

  • Resumen

  • This episode of “Terra Firma: Conversations on Commercial Real Estate” features hosts Stacey C. Tyler and Stephen Tanico talking with Eric Chafetz, partner in Lowenstein’s Bankruptcy and Restructuring Group, about office market bankruptcies, and what to do when a building is going into foreclosure. Eric explains that, because creditors are required to stop a foreclosure proceeding when a single asset real estate company files for bankruptcy, they are seeking the benefit of an automatic stay and the related breathing room to try to work out their affairs and maximize value—often through recapitalization or a sale. The discussion covers such topics as the section 363 sale process, including where a nontraditional finance source purchases the debt at a discounted price; the benefits of a foreclosure sale; and the implications of a receivership. The lawyers also address the speed of bankruptcy proceedings, the importance of venue, and the growing role of hedge funds at the intersection of real estate and bankruptcy.

    Speakers:

    Eric Chafetz, Partner, Bankruptcy & Restructuring Department
    Stacey C. Tyler, Counsel, Real Estate; Deputy Chair, Cannabis Practice
    Stephen Tanico, Counsel, Real Estate

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