Going-out-of-business Sales: State and Local Governments Fight
for Regulation, Rights of Landlords During Sales, Maximizing Value

In connection with retail chapter 11 cases, debtors often elect to close unproductive stores. To maximize the value of the assets related to such stores, debtors often seek to conduct special-event sales. A panel at the 2004 Annual Spring Meeting examined the right of debtors to conduct such sales without complying strictly with state and local laws. The panel also addressed the dynamics of such sales as they relate to consumers, employees and real estate landlords.

Cory Lipoff—Moderator
Hilco Merchant Resources LLC; Northbrook, Ill.

Harold J. Bordwin
Keen Consultants LLC; Great Neck, N.Y.

Karen Cordry
National Association of Attorneys General; Washington, D.C.

Steven E. Fox
Traub, Bonacquist & Fox LLP; New York
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Committee Addresses Real Estate Valuation at 2004 ASM

The Real Estate Committee provided a highly informative CLE panel presentation on real estate valuation, with a focus on disparities between MAI appraisal theory and values achieved in actual sales at the 2004 ABI Annual Spring Meeting in Washington, D.C. Real estate valuation was considered in the context of fee sales, leasehold sales, designation rights and as a component of business valuations. Panelists included Andy Graiser of DJM Asset Managment LLC, Bill Hoffman, president and CEO of Trigild International Inc., and John Collen of Duane Morris LLC and author of Buying and Selling Real Estate in Bankruptcy. Committee Co-chair Alec Ostrow moderated the panel.

The Real Estate Committee settled on a topic for the Winter Conference: Real Estate in Consumer Bankruptcies, which will explore a number of important issues outside the chapter 11 context that has been the committee's traditional focus. The committee continues its work on a model real estate purchase contract, and has lined up future authors for articles on real estate topics to be published on the committee's web site.

Committee Seeks Articles Submissions, Panelists

The committee solicits all ABI members to submit short articles (500-1,000 words) for publication in the committee’s e-newsletter. If you would like to submit an article, please contact David Peress or Rick Tilton. The committee is also looking for members who would like to participate in panel presentations. We encourage “young” members to contact us and to participate in committee activities.