Worldwide: Insolvency/Bankruptcy/Re-Structuring

The U.S. distressed commercial real estate market faces mounting pressure from high interest rates, overleveraging, and an approaching wave of loan maturities. Real estate experts explore why conditions in multifamily, office, and hotel assets may be worse than widely reported, and outline practical strategies for borrowers to protect their interests in an increasingly challenging refinancing environment.

A U.S. Bankruptcy Court ruling examines whether a DIP financing roll-up violates prepetition credit agreement sharing provisions, with implications for how courts interpret payment obligations in liability management exercises. The decision addresses the tension between compensating DIP lenders for new money risk and protecting non-participating lenders' contractual rights to ratable treatment.

A notable shift is emerging in the treatment and pursuit of avoidance actions as bankruptcy filings continue to rise across certain sectors of the economy. Preference litigation, long a routine component of Chapter 11 proceedings, is becoming increasingly sophisticated as trustees, litigation trusts, and estate representatives adopt new tools and strategies to maximize recoveries.

Wisconsin Act 115 introduces a streamlined alternative procedure allowing patient representatives to consent to nursing home or CBRF admissions for incapacitated individuals without requiring guardianship petitions. The legislation extends decision-making authority beyond the previous 90-day limit and modifies incapacity determination requirements, fundamentally changing how healthcare facilities manage admissions for patients lacking activated powers of attorney.

The Supreme Court of Pennsylvania has drawn a firm line around the statutory protections afforded to dissolved LLCs. In Dravo LLC, the court unanimously held that plaintiffs cannot bypass the Pennsylvania Uniform...

The Securities and Exchange Commission (SEC) is proposing to make significant changes to the eligibility of issuers to utilize Securities Act registration Form S-3...