New Delaware Chapter 11 Filing – RAIT Funding, LLC
On August 30, 2019, RAIT Funding, LLC (f/k/a Taberna Funding LLC), along with six of its affiliates, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-11915). According to the accompanying Declaration, the Debtors’ core business is commercial real estate lending. During the period from 2008-2018, the Debtors incurred approximately $1.468 billion in losses as a result of mortgage write-offs, asset write-downs, and losses on the sale of assets. After an earlier, unsuccessful sale process, the Debtors ultimately agreed to a stalking horse purchase agreement with Fortress Credit Advisors LLC on August 30, 2019.
The Debtors presently report assets valued at between $100-500 million and liabilities in the same range. Funds are expected to be available for distribution to unsecured creditors. The cases have been assigned to the Honorable Brendan L. Shannon.
Cole Schotz does not represent the Debtors in this case. We are posting this for informational purposes only. If you have received a notice and have any questions, you should contact Debtors’ counsel.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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