CMBS Certificateholders Denied Standing in Innkeepers Bankruptcy Implications for Structured Finance Participants?

13 April 2011
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Key takeaways 

  • Innkeepers is the first bankruptcy decision to address the standing of CMBS holders directly. 
  • The denial of CMBS certificateholders standing in Innkeepers will dramatically limit the ability of CMBS holders to influence the course of borrowers’ bankruptcy proceedings. 
  • Participants in non-CMBS securitizations that involve an intermediate trustee, or special purpose entity analogous to a CMBS trust, may also be affected by the holding in Innkeepers.