Single Asset Real Estate Debtor

Written by Administrator    Thursday, 30 April 2009 19:05

Single Asset Real Estate Debtor Another type of debtor that has special provisions under the Bankruptcy Code is a single asset real estate debtor. The term “single asset real estate” is defined as “a single property or project, other than residential real property with fewer than four residential units, which generates substantially all of the gross income of a debtor and on which no substantial business is being conducted by a debtor” other than operating the real property and which has aggregate non-contingent liquidated secured debts of no more than $4,000.000.00. The Code provides circumstances under which creditors of a single asset real estate debtor may obtain relief from the automatic stay. For example, on request of a creditor with a claim secured by the real estate and after notice and a hearing, the court will grant relief from the automatic stay to the creditor, within 90 days from the date of the order for relief, unless the debtor files a feasible plan of reorganization or begins making payments to the creditor. The payments must be equal to the current fair market interest rate on the value of the creditor’s interest in the real estate. Last Updated ( Monday, 18 May 2009 07:00 )