Richards Layton & Finger
 

Bankruptcy Remote Entities in Commercial Real Estate Transactions

May 5, 2015

This Practice Note discusses the use of bankruptcy remote entities in commercial real estate transactions, including different types of bankruptcy remote entities, the separateness provisions often required by lenders and the consequences of substantive consolidation. This Note discusses the fundamentals of using a bankruptcy remote entity to purchase real estate, including the reasons an investor may be required to establish a separate entity to purchase real property.