$615M Real Estate Bankruptcy Shows Why Structure Matters

A NYC multifamily developer just combined dozen of entities and 5,000 units into a Chapter 11 bankruptcy filing - exactly what bankruptcy remoteness is designed to prevent.

The Problem: Without proper independent governance, courts will treat your "separate" entities as one big company when creditors come knocking.

The Solution: True independent directors create the firewall between entities that courts respect. They're not just compliance - they're protection.

One property problem ≠ Portfolio-wide bankruptcy

Is your structure actually bankruptcy remote?

Source: Bisnow article on Pinnacle Group’s bankruptcy