CDOs, MBSs, CMBS, CMOs

Relevant Bankruptcy Code Provisons

Posted on Tuesday, April 14, 2009

101 (51B) Single asset real estate encumbered by secured debt not exceeding $4 million.
362 Automatically stays actions against debtor until court grants relief. 362 (d)(3) secured lender with claim against single asset real estate entitled to relief from stay within 90 days of bankruptcy petition unless debtor files plans with reasonable possibility of confirmation and is making interest payments on lenders claim at fair market value.
363 use of cash collateral or income from the property requires court approval. Parties can negotiate budget, financial reporting, non-property related expenses such as debtors attorney.
365 give debtor unilateral right to terminate countracts and leases such as management agreements.
544 right to avoid certain unperfected interests.
547 avoidance of certain transfers made within 90 days.
548 aviodance of certain trasnfers or obligations within 1 year prior to filing.
502/506 claims allowance
1122 classifications of claims may be used to isolate certain hostile creditors/cram down.
1121 debtor right to file plan during initila 100 to 120 days
1125 filing and approval of dislcosure statement
1129 requirements for confirmation of reorganization plan, can effectivelt rewrite lenders mortgage, wide judicial latitude often exercised in favor of debtor.
1112 dismissal or conversion to chpater 11 for causes including lossess to bankruptcy estate, absence of reasonable liklohood of rehabilitation, bad faith filing dismissal.


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