Commentary

In Chapter 11, the debtor will usually seek permission to use the income generated by the property. But if the license to use rents was terminated prior to bankruptcy, the rental income no longer is considered property of the debtor.

Despite the fact that national QSR chains are reporting an average dip in sales of about 25% in the coronavirus, their NOIs have not changed significantly.

Two recent developments will help many in the hospitality, restaurant and tourism industries avoid permanently shuttering their businesses due to the global COVID-19 pandemic.

In the current changing market, "normal" expectations are changing day by day.

Senior housing has been hit hardest by the pandemic. Most transactions are on hold, and new starts are expected to plummet to near zero.

The drafters of the bankruptcy code never anticipated the shutdown of the economy that we are seeing.

The principals at George Smith Partners knew that there would be very few deals at that juncture, so it was critical to their survival to be positioned as one the few capital market advisers that were still doing deals.

Since the federal government has been ineffective about ramping up testing and providing sensible guidelines, the public health monitoring process, including contact tracing, may be months away from effective implementation.