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High Court Won't Hear Ch. 11 Rent Assignment Suit

Law360, New York (October 10, 2017, 1:45 PM EDT) -- The Supreme Court declined Tuesday to review a ruling in which the Sixth Circuit decided that when real estate properties file for Chapter 11, lenders — not the bankruptcy estate — get exclusive dibs on any rent income previously assigned to them.

The Sixth Circuit had ruled in May that rents are not property of the bankruptcy estate if they have previously been assigned to lenders.

As is customary with cert denials, the Supreme Court gave no reasoning for its decision.

The case concerned a 53-unit...
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