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Analysis of Recent Real Estate Sector Bankruptcy Rulings
Continuing to provide analysis on distressed real estate cases, we decided to report on two cases that present different issues. One involves the debtor's sale of real estate over the objection of the secured lender, which was approved. The other involves a debtor's attempt to enjoin a construction bond company from continuing to pay claims by subcontractors after the filing of the bankruptcy case, which was denied.
Real Estate Sale Permitted Over Objection by Allegedly Undersecured Lender
The first case is in In re Lee, Case No. 19-71337- JTL (Bankr. M.D. Ga. 2024), where the debtor sought bankruptcy court approval of a sale of real property over the objection of a lender with an undisputed lien against the property. According to the opinion, the lender filed a proof of claim for $244,234.76, secured by the debtor's real property, which consisted of a home on 43 acres of land. The debtor proposed to sell 15 of the 43 acres to a third party for $265,000. The motion stated the lender's lien would attach to the proceeds of the sale, and the lender would retain its lien in the remaining 28 acres. The lender objected, claiming the amount owed by the debtor was $294,915.99.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Second Circuit Reinforces Bankruptcy Code Settlement Payment Safe Harbor
The Second Circuit affirmed the lower courts' judgment that a "transfer made … in connection with a securities contract … by a qualifying financial institution" was entitled "to the protection of ... §546 (e)'s safe harbor ...."