Courts Issuing Increasing Number of Distressed Real Estate Decisions

July 1, 2024
Though interest rates may have peaked, #FaegreDrinker’s Joseph N. Argentina Jr. (LAW ’09) and Andrew C. Kassner continue to expect a large volume of distressed real estate debtors to utilize the bankruptcy system over the next several years. Two recent decisions demonstrate the state of distressed real estate bankruptcies. Both pit the rights of real estate lenders against the proceeds of collateral other than the real estate itself.