LJN Newsletters

This article examines the issues that must be dealt with by tax-exempt organizations in leasing real estate to third-party lessees.

This is the first part in a series dealing with the subject of bankruptcy strategies and considerations for commercial landlords, tenants, lenders and real estate investors. The subject matter of each part of this series of brief alerts is complex and what is intended is to highlight some of the key issues the reader should consider in connection with the subjects discussed.

This article examines anti-assignment clauses from the landlord's viewpoint; specifically, anti-assignment clauses similar to the following: "tenant shall not, without the prior written consent of landlord, which consent shall not be unreasonably withheld, assign this lease or any interest hereunder, or sublet the leased premises or any part thereof."

Who's doing what; who's going where.

In Ades and Berg Group Investors v. Breeden (In re Ades and Berg Group Investors), the court of appeals affirmed a decision below refusing to impose a constructive trust on proceeds from a settlement of reinsurance claims that were paid to a Chapter 11 debtor. According to the Second Circuit, "retention by the bankruptcy estate of assets that, absent bankruptcy, would go to a particular creditor is not inherently unjust."

Financial advisers, investment bankers, lawyers and other professionals in reorganization cases will be happy with a decision of the U.S. Court of Appeals for the Second Circuit handed down on Jan. 6, 2009: In re Smart World Technologies, LLC.

In re SemCrude, L.P. is a departure from the long-standing assumption that a multi-party netting agreement among affiliates would be upheld in bankruptcy if enforceable under applicable non-bankruptcy law. This article provides an analysis of the decision, the procedural status and its potential impact, and recommendations for minimizing the potential negative implications.

Who's doing what; who's going where.