Minnesota Single Asset Real Estate Bankruptcy

The bankruptcy code provides special treatment for single asset real estate debtors.  One of the major difficulties facing the single asset real estate Chapter 11 debtor is that the exclusive period for proposing a plan for reorganization has been reduced from 120 days to 90 days. With less time to file a plan of reorganization with the bankruptcy court, it is important for the DIP to have a good grasp of their financial situation and have good cash flow to finance a plan or reorganization.  A single asset real estate DIP will also need a current appraisal of their real estate to present to the court to get approval through a cash collateral motion to use the rents or other monies collected from the property to fund the operation of the real estate.