Chapter 11 Bankruptcy by Developer of CDC Property in Doral

Landowners in Doral, Florida

Owners of 120 acres of undeveloped land in Doral, Florida, obtained development financing through the use of community development district bonds. Due to the 2008-2010 real estate recession, the anticipated value of the property was vastly undermined. As a result, the owners filed for chapter 11 bankruptcy protection to avoid a foreclosure judgment, resurrect their mixed-use development, and provide a recovery for unsecured creditors. The debtors were burdened with almost $200 million in secured obligations, approximately half of which stemmed from community development district obligations. After extensive litigation, the debtors agreed to a sale of the property as part of a chapter 11 plan of liquidation. The sale closed successfully, unsecured creditors received a distribution toward their claims, and the new owner contemplates development of the property in the near future.

Related Practices
Jeffrey I. Snyder
General Counsel, Head of Bankruptcy, CMBS Litigation and Workouts
Representation of B piece and special servicer clients, handling in excess of $130billion in 2.0 CMBSsecuritizations.
Handled billions of dollars in distressed debt related to modifications, extensions, forbearances, discounted payoffs, and deeds in lieu of foreclosure.
Successful representation of California bank in complex mortgage foreclosure debt recovery action through state court and bankruptcy court in the Southern District of Florida, which resulted in the criminal indictment of the borrower's principal for bank fraud.