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Independent directors and managers are not limited to commercial real estate. The same bankruptcy-remote governance structures appear in infrastructure, asset-backed securitizations, aviation, renewable energy, and receivables finance. This article explains where these requirements arise, what varies by asset class, and the key governance questions to consider.

CMBS and debt fund loans often require borrowers to operate through bankruptcy-remote special purpose entities, but the details can surprise sponsors unfamiliar with structured finance. This article explains the core SPE requirements, including separateness covenants, independent managers, springing members, non-consolidation opinions, and recycled entity considerations, along with the issues borrowers should address before signing a term sheet.

DAMIS Holdings LLC and 89 affiliated debtors filed a free-fall Chapter 11 covering roughly 55 properties across 23 states. On the petition date, two disinterested directors were seated, the owners were stripped of decision-making authority, and the court was asked to install a single signatory over 95 bank accounts. Governance installed at a filing can preserve value. Only governance installed at origination can decline the transaction. We examine the structure and the separa

If you have ever worked on a commercial real estate loan above roughly $20 million, you have seen the requirement buried in the term sheet: the borrower must be a bankruptcy-remote special purpose entity with at least one independent director or independent manager. For lenders, that line is non-negotiable. For borrowers and sponsors, it is often the least understood condition in the entire loan document, because a stranger is being added to their entity and they are not alwa

SIMAD Holdings' summer camps sold for $368 million at auction, roughly 7 percent above their 2025 appraised values, bringing the reported liquidation total to $440 million. Assets that clear appraisal in a compressed distressed sale locate the failure somewhere other than the business. We examine what the auction results reveal about the capital stack, why the merchant cash advance claims are the next fight, and what entity-level governance would have surfaced earlier.

Strong SPE governance extends beyond organizational documents and closing requirements. It is demonstrated through disciplined entity management, documented approvals, corporate formalities, and consistent adherence to separateness covenants throughout the transaction lifecycle.

Economic downturns test more than property performance. They test whether a bankruptcy-remote structure can withstand financial pressure while preserving the independence of the special purpose entity (SPE). This article examines how market volatility increases scrutiny of governance, entity separateness, and strategic decision-making, and why experienced independent directors play a critical role in maintaining the integrity of bankruptcy-remote structures when they are need

Silver Star Properties REIT has filed for Chapter 11 protection for the second time in less than four years, extending a restructuring journey that began with the 2023 bankruptcy of its principal operating subsidiary, Hartman SPE LLC. This Bankruptcy Watch analysis examines how the company's efforts to reposition a 35-property Texas commercial real estate portfolio intersected with refinancing pressure, multiple loan defaults, and evolving capital structure challenges. It als

Bankruptcy-remote entities are designed to withstand uncertainty, but maintaining the continuity of the entity itself is often overlooked. This article explores why lenders prioritize entity continuity, how springing member provisions support that objective, and what it means for stronger SPE governance.

Previously, SPE Specialists examined the SIMAD Holdings Chapter 11 filings involving one of the nation's largest privately held summer camp operators. This Bankruptcy Watch update follows how that restructuring has expanded to include One Canal Place in New Orleans, demonstrating how platform-level financial distress can affect a performing office asset without disrupting day-to-day operations.

The Adelaide Pointe Chapter 11 cases have entered a new phase as developers, lenders, the court-appointed receiver, and regulators reached a proposed interim restructuring agreement. This Bankruptcy Watch update examines how governance, lender coordination, and project completion have become the focus of the restructuring. It also highlights how negotiated oversight can preserve value in complex real estate bankruptcies.

145 Navarro LLC's Chapter 11 restructuring has entered a new phase as the downtown San Antonio office-to-hotel conversion moves toward a court-supervised sale. This Bankruptcy Watch update examines how construction delays, lender enforcement, and adaptive reuse execution reshaped the project's trajectory.

SIMAD Holdings' Chapter 11 filing shows how a profitable business can still face bankruptcy when capital structure, governance, and liquidity break down. Despite strong revenue growth and a successful operating platform, the nation's largest privately held summer camp network was pushed into restructuring by bond defaults, disputed cash transfers, and a highly leveraged financing stack. This case highlights the growing importance of resilient entity structures and disciplined

Simry Realty Corp. filed Chapter 11 protection on June 14, 2026, affecting a seven-property Manhattan multifamily portfolio with nearly 500 apartment units. Unlike many real estate bankruptcies driven by asset distress, the filing appears tied to a prolonged family ownership dispute that hindered refinancing efforts after mortgage obligations matured in June 2024. The case illustrates how governance challenges can evolve into capital structure risks and ultimately drive restr

Three Barry Singer-affiliated SPEs filed Chapter 11 bankruptcy petitions in June 2026, highlighting how commercial real estate restructurings unfold at the entity level rather than the portfolio level. The filings follow reported loan defaults, special servicing transfer, tax delinquencies, force-placed insurance, and ongoing housing enforcement actions. The case provides a real-world look at how SPE structures and governance frameworks perform under financial stress.

Bankruptcy-remoteness remains a cornerstone of commercial real estate finance. As market volatility and refinancing pressures persist, lenders and investors are placing renewed focus on SPE governance, independent directors, and enforceable fiduciary structures. Recent legal developments and CREFC insights highlight why maintaining strong bankruptcy-remote protections remains critical for risk management and transaction stability.

DK Arena’s Chapter 11 filing halted a scheduled foreclosure auction involving a 53-acre former jai alai site in Palm Beach County, Florida. This Bankruptcy Watch analysis examines how prolonged redevelopment delays, refinancing pressure, and rising default debt shaped the filing. It also highlights how land-banking strategies become vulnerable when capital timelines extend beyond financing assumptions.

D.K.A. One LLC filed Chapter 11 protection one day before a scheduled sheriff’s sale involving the vacant Metairie Towers property in Old Metairie, Louisiana. This Bankruptcy Watch analysis examines how refinancing pressure, escalating default interest, and shifting redevelopment assumptions shaped the filing. It also highlights how adaptive reuse projects become increasingly vulnerable when redevelopment timelines extend beyond financing expectations.

Via Mizner Owner II LLC’s Chapter 11 restructuring has entered a new phase as the Mandarin Oriental Boca Raton development moves toward a proposed bankruptcy auction. This Bankruptcy Watch update examines how refinancing pressure, layered secured debt, and extended construction timelines continue shaping the restructuring process. It also highlights how lender control increasingly influences partially completed hospitality developments.

Leestma Management LLC filed Chapter 11 following lender enforcement actions tied to the Adelaide Pointe mixed-use waterfront development in Muskegon, Michigan. This Bankruptcy Watch analysis examines how receivership, assignment-of-rents enforcement, and incomplete stabilization affected restructuring flexibility. It also explores the role of SPE structuring in multi-entity developments.