Articles Posted in Workouts, Bankruptcies & Receiverships

Published on:

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
15 January 2013

Hotel Lawyer with lender problems on a problem golf course.

A recent court decision points to a critical difference between the way revenue generated by golf courses and revenue generated by hotels is viewed in a bankruptcy scenario. My partner, Ben Young, reports how one lender found out that the cash flow generated from the green fees of a bankrupt golf course was not part of the lender’s collateral.

Veteran workout specialists will be reminded of the old “rents versus accounts” issue on hotel revenues that was finally resolved by an amendment to the Bankruptcy Code.

Double Bogie: Bank’s Security Interest in Green Fees
Cut Off by Club’s Bankruptcy

by
Bennett G. Young | Hotel Lawyer

Are golf course revenues “rents”?

A golf course may look like a solid piece of collateral. After all, golfers will pay good money to play and the green fees and driving range fees golfers pay to play the course will generate a revenue stream. This revenue stream can be pledged to a lender and used to support loans to the owner of the course. Lenders love to finance a business that generates a steady revenue stream, making a golf course look like an attractive form of collateral.

But what happens if the owner of the course files a bankruptcy case? In that event, the lender will want to control the borrower’s cash flow. Does the lender’s lien extend to the green fees and driving range fees paid by golfers after the course’s owner files a bankruptcy case?

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Published on:

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
15 October 2012


Hotel Lawyer on Workouts, Bankruptcies & Receiverships meeting

The hotel lawyers of JMBM’s Global Hospitality Group® are frequently called upon by the organizers of hospitality industry conferences to speak on critical issues affecting hotel owners, investors and lenders. My partner, Bob Kaplan, will be speaking this week at the Fall 2012 Trigild Lender Conference in San Diego.

EXTENDED BODY:

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Published on:

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
10 August 2012

Hotel restructuring, workouts, receiverships and bankruptcy. The art of heavy lifting. Because bankruptcy lawyers tend to stay out of the limelight, we were pleased when my partner, Bob Kaplan — a superb bankruptcy lawyer and a senior member of the Global Hospitality Group® — was featured in the recent Northern California Super Lawyers® Magazine. Bob is the kind of lawyer who gets the best results for his clients in the least possible time, and he is not the kind of lawyer to toot his own horn. However, the work he does for our clients is critical to their success, and the expertise he brings to a troubled hotel can add significant value for all players.

For a glimpse into the high stakes work of commercial bankruptcies, please read this article about a great partner and friend, Bob Kaplan. It describes what we do best at the Firm — take care of clients and deliver results.

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Published on:

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
15 July 2010

Hotel Lawyer with the latest information on hotel loan defaults, foreclosures, forebearances and distressed sales in California from the Atlas Hospitality Group.

Less than two weeks after the quarter’s end, Atlas Hospitality has released its California Distressed Hotels Survey (2nd Quarter 2010).

Here is our executive summary of that report, our view of its national implications and what we think it means for owners, lenders and investors.

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Published on:

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
05 May 2010

Sorry if you have already received this message, but for some reason we are getting a lot of emails and calls from people who have had trouble getting to The Lenders Handbook for Troubled Hotels . . . so we want to make it easier . . .Click on the graphic below to download the Handbook.

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Hotel Lawyer with

    The Lenders Handbook for Troubled Hotels

Troubled hotels? Hotel loan defaults? Distressed hotel assets? Hotel bankruptcies, receiverships, or workouts?

If you are dealing with the troubled hotel asset of any kind, The Lenders Handbook for Troubled Hotels will be an invaluable guide for you. This comprehensive, easy-to-read, 98-page book is FREE from the hotel lawyers at JMBM’s Global Hospitality Group®.

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Published on:

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
03 May 2010

The Lenders Handbook for Troubled Hotels
Lenders, special servicers, investors and receivers!

Book-Cover-1.gif

Are you aware of the full range of alternative strategies for dealing with troubled hotels? Does your lawyer provide you with analytical tools to help you identify, evaluate and select from a full range of options? Do you know how to recognize the crucial points where the wrong decision can give away more than half the value of a hotel?

We cover these critical issues — and much more — in our new, comprehensive, 98-page book, The Lenders Handbook for Troubled Hotels. Distilled from experts who have more than 1,000 bankruptcies, receiverships and workouts under their belts and more than 20 years of experience, you will find the handbook useful as a permanent resource that you can refer to time and again.

And you can get your copy for FREE! (see download link below)

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Published on:

By Jim Butler, Jeff Steiner and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
25 February 2010

Please see “troubled hotel loans – workouts, bankruptcies & receiverships” for the latest articles on troubled hotels.

CMBS loan delinquencies — a problem growing every month at a staggering rate.

According to the Monthly Delinquency Report issued by Realpoint a few days ago, the total outstanding amount of CMBS (Commercial Mortgage Backed Securities) tracked by that firm is almost $800 billion, of which approximately $46 billion was delinquent in January 2010.

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Published on:

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
07 February 2010

Please see “troubled hotel loans – workouts, bankruptcies & receiverships” for the latest articles on troubled hotels.
Hotel Lawyer with tips for lenders on defaulted California mortgages. California now leads the nation in defaulted mortgages for hotels and commercial real estate. As lenders start to review their options, they must formulate asset plans that will avoid violating California’s tricky one action and anti-deficiency rules, or they may be in for some nasty surprises.

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Published on:

By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com
1 February 2010

Please see “troubled hotel loans – workouts, bankruptcies & receiverships” for the latest articles on troubled hotels.

Hotel Lawyers with grim reports from the field. If lenders are looking for some encouraging news on their distressed hotel asset sales prospects, they are not going to get it anytime soon. That is what the Atlas 2009 Year End Hotel Survey shows, but it does offer some valuable tips for dealing with continued distress in 2010.

Here is an executive summary.

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Published on:

By Jim Butler and the Global Hospitality Group®
Hospitality Lawyers | Authors of www.HotelLawBlog.com
31 January 2010

Hotel Lawyer: A new realism settles on the hotel industry. We’ve already given up 2010 and 2011 won’t be that much better . . . then a long, slow “jobless recovery.”

“Realism” was the defining word for the ALIS conference held in San Diego on January 25-27, 2010. ALIS attendance was roughly half or less of last year, and the experts officially declared 2009 one of the worst years for the hospitality industry. They have already thrown in the towel on the industry for 2010, and look to an anemic 2011, with double digit growth in RevPAR after that . . . but we are so far down the hole now, that even double digit RevPAR growth will take years to reclaim the levels enjoyed in 2005-2007.

So what does this portend for lenders? And what is the smart money doing now?

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