The Sixth Circuit Court of Appeals recently issued an important decision on the Michigan assignment of rents statute and the impact and effect of a lender exercising its rights thereunder prior to the commencement of a bankruptcy petition. The holding is that a properly perfected assignment of rents enforced prior to the commencement of a bankruptcy excludes such rents from becoming property the bankruptcy estate. This decision represents the first ruling by the Sixth Circuit Court of Appeals on this issue, and resolves a split amongst the Eastern District and Western District Bankruptcy Courts. An analysis of the decision, as well as a copy of the decision, is attached to this event listing for your review.
The Committee will be doing a presentation on assignment of rents, along with an analysis of this opinion and the effects that it is likely to have on single asset real estate debtors ability to reorganize. The panelists will include:
The meeting will include dinner (at no charge). Please e-mail Judy Calton if you’d like to attend, or call (313) 465-7344.
Please see the attached flyer for more information about this event.