Case Study: In Re Creekside Senior Apartments

Law360, New York (July 24, 2012, 1:08 PM EDT) -- In an apparent decision of first impression, an appellate court has held that a low income housing tax credit (LIHTC) borrower cannot use the bankruptcy process as a tool to strip the value of the LIHTCs from the lender's secured claim, therefore paving the way for a cramdown plan at a significantly reduced valuation....

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