In COVID-19, Litigation, News & Updates

In an article published by the Daily Business Review, Aleida Martinez Molina, Chair of the Firm’s Insolvency and Creditors’ Rights Practice Group, commented on the expected rise of single-asset real estate bankruptcies (SAREs), which are streamlined reorganizations for debt taken out by borrowers on just one property. SAREs give borrowers 90 days to propose a restructuring plan, which is a much shorter time span than a typical Chapter 11.

“This would be one of the final options if they can’t do it directly with their creditors,” said Aleida. “The reason why I don’t think these are imminent is I would expect there is still the opportunity to negotiate directly with creditors, and creditors are being realistic, and I see a lot of out-of-court workouts taking place. Folks are negotiating, and everyone is being for the most part realistic, settling out of court.”

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