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.