How to Resolve a Chapter 11 Bankruptcy Involving Distressed Real Estate Assets
Journal of Real Estate Practice and Education, Forthcoming
21 Pages Posted: 22 Jun 2011
Date Written: June 20, 2011
This teaching case provides students with an opportunity to evaluate the best course of action for a firm who just filed for Chapter 11 Bankruptcy protection. The home-builder is already in default on over $20 million in loans. They have homes at various stages of the construction process, and many of the properties are saddled with problems ranging from building code violations to hazardous building conditions. This case allows students to analyze and debate the numerous legal, financial, and ethical issues that are inseparable from a resolution of distressed real estate assets. All information utilized in this case is based on an actual Chapter 11 Bankruptcy proceeding, though the names of all parties involved have been changed for the sake of anonymity.
Keywords: Chapter 11, Bankruptcy, Real estate, Home-Builder
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