What are Single Asset Real Estate Entities?
Prior to the Bankruptcy Reform Act of 1994, the Bankruptcy Code lacked any express provision for a single asset real estate case. Then once the 1994 Act was enacted, there was a specific provision for the treat- ment of single asset real estate by defining the term single asset real estate in the Bankruptcy Code and by placing single asset real estate cases on an expedited reorganization track. This expedited reorganization track requires that the debtor begin making interest payments to the secured lenders ninety (90) days after the entry for the order of stay relief or the debtor has filed a plan for reorganization that has a reasonable possibility of being confirmed. If the debtor in a single asset real estate case is unable to comply with either of these provisions then the secured lender is entitled to stay relief. The definition of single asset real estate first included a limitation to debtors with secured debts of no greater than $4 million. The $4 million cap was removed as pa
