Schafer and Weiner Confirms Single Asset Real Estate Chapter 11 Case

 Single asset real estate cases can be tricky.  Mortgage lenders have significant rights under their assignment of rents provisions and section 1111(b) of the Bankruptcy Code. Daniel Weiner, Michael Baum, and John Stockdale, Jr. guided a single asset real debtor through these issues and confirmed its chapter 11 reorganization plan.  The debtor operated a large retail strip mall in Macomb County, Michigan, which suffered during the COVID-19 Pandemic.  Dan, Michael, and John obtained exceptional results for the debtor by first securing the debtor’s use of cash collateral - - even though the lender claimed that the rents belonged to it after the debtor defaulted - - and then confirming a chapter 11 plan.  The plan significantly reduced the mortgage payments and allowed the owners to preserve and improve their investment as the shopping center adds new tenants.