Clifford Chance

The Ninth Circuit Rejects 'Whole Enterprise' Exception to Secured Lenders' Rights in Single Asset Real Estate Bankruptcy Cases

2 February 2012

In what appears to be a case of first impression, the United States Court of Appeals for the Ninth Circuit rejected the notion that a single asset real estate debtor that is part of a larger real estate enterprise can avoid the special protections for secured creditors under the Bankruptcy Code. The decision is an important victory for creditors holding claims secured by real property of single asset debtors.

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