Propel your Bankruptcy e-Learning

Hosted by ABI's Real Estate Committee Commercial real estate continues to be top of mind for restructuring professionals nationwide, as Federal Reserve interest rate policy to curb inflation is impacting values at the same time as rapid changes in supply and demand within several asset classes have taken hold. ABI's Real Estate Committee is honored to host a commercial real estate economic outlook presentation featuring Martin Lavelle, senior business economist with the Federal Reserve Bank of Chicago, to provide important market intelligence. Lavelle’s research topics include construction and real estate, consumer spending, rural economic development and more. He is heavily involved in the formulation of the Chicago Fed’s Beige Book submission by moderating roundtables of key business contacts and regional stakeholders. This program will cover such key questions as which markets appear to be under the greatest pressure, the status of the return-to-office environment and key indicators to watch as this sector evolves, what is going on in other major asset sectors, whether construction prices are subsiding, what the general sense is about the enormous amount of near-term debt maturity in light of market values, and whether there is stress on the community banking system given higher concentrations of real estate lending. The webinar will include time for Q&A.

Hosted by ABI's Unsecured Trade Creditors Committee This mock mediation, based on the Southern District of New York’s (SDNY's) recent preference decision in The Great Atlantic & Pacific Tea Company, Inc. bankruptcy cases involving McKesson Corp., will demonstrate how plaintiff, defendant and mediator analyze risk and preference exposure when trying to reach a mediated settlement. The SDNY’s decision followed two summary-judgment motions filed by McKesson, but this webinar will assume that this is a pre-summary-judgment mediation. The panelists will discuss the three issues decided by the court: (1) whether McKesson could include paid new value as part of its new value defense (i.e., whether the subsequent advance vs. remains-unpaid approach is appropriate); (2) whether McKesson could set off its § 503(b)(9) claim (i.e., its 20-day claim) against preference liability (i.e., mutuality as to when a § 503(b)(9) claim and preference claim arise); and (3) whether the amounts in McKesson’s § 502(h) claim, which paid invoices for 20-day § 503(b)(9) goods, should be a general unsecured claim that recovers $0, or a higher priority § 503(b)(9) claim, which could theoretically recover 100% if a plan was confirmed, but would recover much less here, as the cases were administratively insolvent and structurally dismissed. A fourth issue that the SDNY implicitly addressed was whether there is improper double-dipping where there is an allowed § 503(b)(9) claim (either paid or reserved for) that a claimant seeks to also include as part of its new value calculations (i.e., Auriga Polymers and, analogously, Friedmans).

Hosted by ABI's Real Estate Committee The hospitality sector is one of the commercial real estate asset classes that has endured profound changes since the pandemic, both positive and negative. Pent-up demand for travel, flexible work schedules and strong consumer spending are driving demand in some sectors, while remote work has fundamentally changed business travel, which is straining occupancy and profits at properties that historically have relied on this steady stream of business. There are significant pockets of distress among hotel owners, particularly those facing maturing mortgage loans at a time of higher borrowing costs and more stringent lender underwriting requirements. This is against a backdrop of slowing hotel industry revenue growth, sticky inflationary pressures on labor and operating expenses, and sharp increases in property insurance costs. ABI's Real Estate Committee is pleased to provide this opportunity to dive into the hospitality sector with 45-year industry veteran Frank Nardozza, chairman and CEO of REH Capital Partners, LLC, a national investment and advisory services firm focused on hospitality investment, finance and consulting. He previously served as the National and Global Real Estate and Hospitality Consulting Practice Leader for KPMG. The program will conclude with a live question-and-answer session.