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Victor Petrescu, partner at Levine Kellogg Lehman Schneider + Grossman in Miami, says unemployed and underemployed borrowers will be in the worst position once the moratorium is lifted.
The divided high court's decision could have dramatic and lasting effects on New York City's real estate development community, which commonly relies on the so-called bankruptcy remote special purpose entity loan structures to manage risk.
There is a growing recognition that it's better to plan and prepare now for the future economic risk associated with pandemic-related and other potential government shutdowns.
The CEC Entertainment case shows that bankruptcy courts may be willing to grant debtors extraordinary relief in light of the ongoing pandemic, but only if there is some contractual basis to do so.