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John Stockdale Jr. Secures Debtor’s Use of Rents at Contested Hearing

May, 2022

Schafer and Weiner, PLLC represents a real estate holding company in a subchapter V bankruptcy proceeding.  A business operating in bankruptcy must seek authority to use its cash and cash collateral.  The debtor operates, among other properties, a motel in Nevada and, arguably, its future rents are cash collateral.  The debtor’s two secured creditors objected to its post-petition use of the rents.  John successfully argued to the bankruptcy court that each creditor was adequately protected; and, as a result, the Bankruptcy Court overruled the secured creditors’ objections and authorized the debtor to use its cash and future rents.