Timing The Bankruptcy Filing Of Commercial Real Estate

Law360, New York (March 16, 2012, 2:08 PM EDT) -- The In re JER/Jameson Mezz Borrower II, 461 B.R. 293 (Bankr. D. Del. 2011) (“Mezz II”) Chapter 11 case recently tested the ability of a special purpose commercial real estate entity (“SPE”) to stay in bankruptcy when confronted with a motion to dismiss filed by its secured lender. In the Mezz II case, the United States Bankruptcy Court for the District of Delaware determined that the debtor’s Chapter 11 petition was filed in bad faith and dismissed the case.

The decision is in contrast to the...
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