Articles Posted in Workouts, Bankruptcies & Receiverships

Published on: January 15, 2013

Security interest in golf course revenues cut off by Bankruptcy

By Jim Butler and the Global Hospitality Group®

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: October 16, 2012

JMBM will be at the Fall 2012 Trigild Lender Conference

By Jim Butler and the Global Hospitality Group®

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:

Published on: August 10, 2012

Hotel restructuring, workouts, receiverships and bankruptcy. The art of heavy lifting.

By Jim Butler and the Global Hospitality Group®

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: July 15, 2010

Global Hospitality Advisor: National implications of the July 2010 Atlas Hospitality Group distressed hotels survey

By Jim Butler and the Global Hospitality Group®

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: May 5, 2010

The Lenders Handbook for Troubled Hotels — How to get a FREE copy . . .

By Jim Butler and the Global Hospitality Group®

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.

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: May 3, 2010

Hotel workouts, hotel bankruptcies, hotel receiverships — We wrote the book on troubled hotel assets: The Lenders Handbook for Troubled Hotels.

By Jim Butler and the Global Hospitality Group®

03 May 2010

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

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: February 25, 2010

Tranche Warfare: The coming litigation among stakeholders in CMBS Loans

By Jim Butler and the Global Hospitality Group®

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.

CONTINUE READING →

Published on: February 7, 2010

Hotel Lawyer: California foreclosure traps for unwary lenders: California’s one action and anti-deficiency rules. What one top expert tells lenders about avoiding the pitfalls of foreclosing in California on hotels and other mixed collateral.

By Jim Butler and the Global Hospitality Group®

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: February 1, 2010

Atlas 2009 Year End Hotel Survey . . . and what it means

By Jim Butler and the Global Hospitality Group®

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.

CONTINUE READING →

Published on: January 31, 2010

Hotel Lawyer: ALIS brings optimists to earth. Lenders make new evaluations. Realism is cold and gray.

By Jim Butler and the Global Hospitality Group®

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?

CONTINUE READING →

Jim Butler

Jim Butler is recognized as one of the top hotel lawyers in the world. He devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders. Jim leads JMBM’s Global Hospitality Group® — a team of seasoned professionals with more than $87 billion of hotel transactions, involving more than 3,900 properties located around the globe.
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Robert Braun

Robert Braun is a partner in JMBM's Corporate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $87 billion of hotel transactional experience, involving more than 3,900 properties located around the globe. Bob represents owners in both transactional and operational issues. He advises clients with respect to business formation, financing, mergers and acquisitions, venture capital financing, joint ventures and strategic partnerships. He has represented hotel owners in the negotiation of several hundred management agreements, as well as spa management and franchise agreements. Bob also advises hotel owners regarding telecommunications, software, internet, e-commerce, data processing and outsourcing agreements. To read Bob's articles, go to www.HotelLawBlog.com and select "Management Agreements." For more information, please contact Bob Braun at 310.785.5331 or rbraun@jmbm.com.

Marta Fernandez

Marta Fernandez is a partner in JMBM's Employment and Labor Department and a senior member of JMBM’s Global Hospitality Group® -- a team of 50 seasoned professionals with more than $87 billion of hotel transactional experience, involving more than 3,900 properties located around the globe. As a management labor lawyer with more than 20 years of experience, Marta specializes in representing hospitality industry clients in all aspects of labor and employment including labor-management relations such as union prevention, collective bargaining for single as well as multi-employer bargaining units, neutrality agreements and defense of unfair labor practice charges before the NLRB. She defends employers in administrative and litigation claims, such as employee claims of sexual harassment and discrimination and counsels clients in preventative strategies such as executive training, arbitration enforcement, and policies and procedures. To read Marta's articles, go to www.HotelLawBlog.com and select "Labor & Employment." For more information, please contact Marta Fernandez at 310.201.3534 or at mfernandez@jmbm.com.

Guy Maisnik

Guy Maisnik is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $87 billion of hotel transactional experience, involving more than 3,900 properties located around the globe. Guy's deep and broad transactional practice includes complex real estate finance and venture capital transactions, including project finance, commercial finance, leveraged leasing and real estate acquisitions. He assists clients with development, leasing and disposition, loan portfolio acquisitions, loan and debt restructure, workouts and real estate exchanges. Go to www.HotelLawBlog.com for current information in these areas. For more information, please contact Guy Maisnik at 310.201.3588 or mgm@jmbm.com.

David Sudeck

David Sudeck is a Partner in JMBM's Real Estate Department and a senior member of JMBM’s Global Hospitality Group® -- a team of 50 seasoned professionals with more than $87 billion of hotel transactional experience, involving more than 3,900 properties located around the globe. David has significant experience in the vacation ownership arena, focusing on the formation and registration of condominiums, timeshares and fractional interest regimes. He negotiates hotel, spa and restaurant management agreements, and assists client in the development, acquisition, sale and leasing of hotels, golf courses and restaurants. For David's take on current issues in the timeshare arena, go to www.HotelLawBlog.com and click on the topic, "Timeshare." For more information, please contact David Sudeck at 310.201.3518 or dsudeck @jmbm.com.

Robert Kaplan

Robert Kaplan is a partner in JMBM's Bankruptcy, Insolvency and Restructurings Group and a senior member of the Global Hospitality Group® -- a team of 50 seasoned professionals with more than $87 billion of hotel transactional experience, involving more than 3,900 properties located around the globe. Bob represents lenders, special servicers, hard money lenders, community banks, national banking associations, distressed debt investors, and equity investors, positioning them for the best possible outcome by acting expeditiously to preserve value and increase cash flow. His industry experience and his knowledge of the current capital markets -- where distressed assets often include complex deal structures and securitized loans -- allows him to bring creative and effective strategies to the table. When aggressive litigation is the best strategy, he is a vigorous and effective advocate for his clients. Bob represented the securitized lender in the Chapter 11 bankruptcy case filed by the Clift Hotel in San Francisco, and in the subsequent negotiations and successful sale of the loan to a third party. The lender -- acting by and through GMAC Commercial Mortgage Corporation as special servicer -- was the holder of a $60 million loan secured by a Deed of Trust on the Clift Hotel. He has also served as counsel to CapMark, J.E. Robert Company, Inc., AMRESCO Management Inc. and Midland Loan Servicer in their capacity as special servicers on troubled hotel loans in CMBS pools. For more information, contact Robert Kaplan at 415.984.9673 or rkaplan@jmbm.com.

Martin Orlick

Martin Orlick is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $87 billion of hotel transactional experience, involving more than 3,900 properties located around the globe. Marty specializes in representing hospitality industry clients in Americans With Disabilities Act (ADA) compliance and defense. He has represented more than 500 businesses in ADA issues, many of them hotels and restaurants, as well as hotel mixed-use properties. Marty is a member of the American College of Real Estate Lawyers (ACREL) and a frequent speaker on the ADA and other topics. To read Marty's articles, go to www.HotelLawBlog.com and select "ADA." For more information, please contact Marty Orlick at 415.984.9667 or morlick@jmbm.com.

Scott Brink

Scott Brink is a senior member of JMBM's Global Hospitality Group® and a partner in JMBM's Labor & Employment Law Department. Scott is a management labor lawyer with more than two decades of experience representing employers in all aspects of labor relations and employment law including union prevention, collective bargaining negotiations, defense of unfair labor practice charges before the NLRB, wrongful discharge litigation, individual and class action employment discrimination and wage-and-hour claims, sexual-harassment litigation, arbitrations, personnel policies, California wage and hour law, and employee discipline and discharge. An experienced trial attorney, Scott has litigated a number of high-profile and complex cases involving a wide range of labor and employment law matters. For more information, contact Scott Brink at RSB@jmbm.com or 310.785.5365.

Travis Gemoets

Travis Gemoets is an experienced trial attorney and represents management in all facets of labor and employment law, including wage/hour class actions, claims of discrimination, harassment, wrongful termination, trade secrets and unfair competition, union/management relations and workplace violence. He is a member of JMBM's Global Hospitality Group(r), in which capacity he negotiates union contracts and resolves labor disputes throughout the country, defends class action claims, develops strategies for the mass onboarding and separation of employees, and recommends proactive changes to employers' policies and practices in order to minimize potential liability risks. Reach him at 310.785.5387 or tgemoets@jmbm.com.

Mark S. Adams

Mark S. Adams is an experienced trial lawyer and a member of JMBM's Global Hospitality Group® and Chinese Investment Group™. He focuses his practice on business litigation including contracts, corporate and partnership disputes, and hospitality disputes and litigation. On behalf of hotel and resort owners, Mark has successfully litigated the termination of long-term, no-cut, hotel management agreements, franchise agreements, fiduciary duty issues, investor-owner disputes, TOT assessments, and more. He has wide-ranging trial experience in a variety of commercial disputes, including complex multi-party litigation and class actions. He has tried numerous cases in state courts, federal courts, and in domestic and international arbitrations, and is a frequent author and speaker on trial practice. Mark's trial wins have been covered by Forbes, Reuters, and other publications. He has obtained two of California's annual 50 largest jury verdicts in the same year. Mark has taken or defended nearly 1,000 depositions throughout North America, Europe and the Middle East. He has been quoted as an expert on noncompete agreements in the Wall Street Journal. For more information, contact Mark at 949. 623.7230 or markadams@jmbm.com.

Jeffrey Steiner

Jeffrey Steiner is a partner in JMBM's Real Estate Department and a senior member of JMBM's Global Hospitality Group® -- a team of 50 seasoned professionals with more than $87 billion of hotel transactional experience, involving more than 3,900 properties located around the globe. He represents both institutional lenders and borrowers in connection with construction and permanent lending, loan work outs and restructurings, real estate development, design and construction contracts, real estate acquisitions and sales, preparation and negotiation of commercial leases on behalf of landlords and tenants, joint venture transactions and hotel management agreements, purchases and sales and financings. For more information, please contact Jeff Steiner at 310.201.3514 or jsteiner@jmbm.com.

Bennett Young

Bennett Young is a partner in JMBM's Bankruptcy, Insolvency and Restructurings Group and a senior member of the Global Hospitality Group® -- a team of 50 seasoned professionals with more than $87 billion of hotel transactional experience, involving more than 3,900 properties located around the globe. His clients include lenders, financial institutions, secured and unsecured creditors, distressed investment funds, businesses, receivers, special servicers and creditors' committees. Ben represented the owner of a partially completed multi-billion dollar resort property in the restructuring of its finances and has represented lenders to hotels and casinos. For more information, contact Ben Young at 415.984.9626 or byoung@jmbm.com

Sheri Bonstelle

Sheri Bonstelle is a partner in JMBM's Government, Land Use, Environment and Energy Department, and a member of JMBM's Global Hospitality Group®. She represents owners and developers in land use, zoning, environmental, litigation and construction matters. She manages all aspects of the entitlement process, including representing clients before local and state agencies, commissions and councils. Sheri also represents clients in a variety of land use and real estate litigation matters in state and federal courts, including cases arising under CEQA and other environmental laws. Her hotel experience includes handling the adaptive reuse of an historic office building as a luxury boutique hotel. For more information, please contact Sheri Bonstelle at 310.712.6847 or SBonstelle@jmbm.com.

Kevin McDonnell

Kevin McDonnell is a partner in JMBM's Government, Land Use, Environment and Energy Department, and a member of JMBM's Global Hospitality Group®. Kevin represents developers and owners of hotels in a broad range of land use and zoning issues including entitlements, code enforcement, easements and parking requirements, as well as related Parcel Map and Tract Map subdivision issues. His hospitality experience includes hotels, condo-hotels and mixed-use projects. A registered Civil Engineer and Structural Engineer in California, and a former building official for the City of Los Angeles, Kevin brings unique experience and insight in Zoning and Building Code applications and Code Enforcement issues. For more information, please contact Kevin McDonnell at 310.201.3590 or kkm@jmbm.com.

Jamie Ogden

Jamie Ogden is a tax lawyer at Jeffer Mangels Butler & Mitchell LLP. He advises individuals and businesses on a range of tax planning, tax controversy and estate planning matters. Jamie’s experience includes all tax aspects with respect to the hospitality industry, including acquisitions and dispositions (including Section 1031 exchanges), financing and management agreements. He also serves as lead tax counsel on M&A transactions, financing, internal corporate restructurings and deferred compensation matters. Jamie also works frequently with litigators on the tax aspects of litigation, judgments and settlements. Jamie has extensive experience with foreign compliance matters, including each variation of the IRS amnesty programs. In addition to his experience in private practice, Jamie also brings several years of service from both state and federal government. For more information, contact Jamie at JOgden@jmbm.com or 310.201.3510.

Wei Deng

Wei Deng is General Counsel of Bosen American Capital, Inc. where in addition to his legal duties, he is responsible for sourcing, evaluating and proposing United States investment opportunities to the company. Wei was previously with JMBM, where he focused on transactional and litigation matters.

Global Hospitality Group®
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Direct: (310) 201-3526
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E-mail: jbutler@jmbm.com

Ask the Hotel Lawyer™ is a quarterly column that I write for JMBM's Global Hospitality Advisor®. If you have a question you would like to submit to Ask the Hotel Lawyer™ please use the comments box below. While your question may not be of sufficient general interest for the column, I will try to respond to you individually if you leave your contact information below.
Jim Butler.