  |
  |
  |
    
  
   |
 | |||
|
|
|
|
| |||
ix. Putnal v. SunTrust Bank, 489 B.R. 285 (M.D. Ga. 2013)
Issue: Whether the rents, cash collateral, of a secured creditor's real property collateral were distinct collateral from the real property and entitled to its own adequate protection.<
Holding: The district court affirmed the bankruptcy court in holding that the rents of the secured creditor's real property collateral were separate collateral from the real property and entitled to separate adequate protection. The debtor sought to use its cash collateral, the rents accrued from the lease of the secured creditor's real property collateral, to help pay its bankruptcy expenses. Relying on the majority of cases addressing the issue and the plain language of the deed of trust, particularly the assignment of rents clause, the court found that the rents were cash collateral separate from the security interest in the real property and were entitled to separate adequate protection. The court also agreed with the bankruptcy court's restrictions on the debtor's use of the cash collateral. The debtor was not allowed to use the cash collateral for its bankruptcy expenses or any other expenses not associated with the real property collateral "because for each dollar in rents [the debtor] spends, he deprives [the secured creditor] of the adequate protection of that dollar." The court concluded that the debtor could only use the cash collateral for expenses "directly related to the operation, maintenance, or preservation of the" real property collateral.
x. In re Three Legged Monkey, L.P., 486 B.R. 773 (Bankr. W.D. Tex. 2013)
Issue: Whether the debtor tenant of a shopping center could assume its lease with the shopping center, when the owner of the shopping center was also in bankruptcy.
Holding: The tenant's motion to assume its shopping center lease was heard at a consolidated hearing of the tenant's bankruptcy case and the shopping center owner's bankruptcy case. The court first held that the shopping center owner's termination of the debtor's lease without court approval was outside its ordinary course of business and thus, ineffective. Despite the bankruptcy court in the tenant's bankruptcy case granting the shopping center owner stay relief, the court found that the tenant was paying rent and the owner did not follow industry customs of providing notice to the tenant. The court then held that that the tenant could assume its lease with the shopping center because it showed it had money to cure its property tax arrearages. Additionally, the court found that the debtor gave adequate assurance of future performance because it had consistently paid rent for many years, it was in a growing area, it had a steady stream of income, and the shopping center was its only location, meaning that denial of the tenant's motion would be significantly detrimental to its business.
xi. Brown Publishing Company Liquidating Trust v. Brown Media Corporation (In re Brown Publishing Company), 486 B.R. 46 (Bankr. E.D.N.Y. 2013
Issue: Whether a stalking horse bidder in a Chapter 11 asset sale breached the asset purchase agreement (APA) by not closing on the scheduled closing date. Whether the APA contained a
©2014 William L. Norton III
