Join CREFC’s Working Group on Reforming the Bankruptcy Code

November 20, 2023

CREFC’s Policy Committee, which comprises the leadership of each CREFC Forum, works to analyze and recommend positions on a variety of federal policy issues impacting the CRE and multifamily finance industry.

Why it matters: The Policy Committee has been working on proactive measures to address issues of concern. As such, the Committee would like to develop and propose amendments to the federal bankruptcy code.

The committee identified eight key issues for discussion. The items are summarized below. These are draft discussion items and do not reflect policy positions.

  1. Promote mezzanine borrower bankruptcies separate and apart from those of senior secured borrowers.
  2. Protect secured lenders in a cram-up situation.
  3. Codify the solvent debtor exception and allow post-petition interest at the contract rate.
  4. Confirm that early redemption, yield maintenance, prepayment premiums, and make-whole amounts are not unmatured interest, so they could be collectable in bankruptcy.
  5. Explicitly authorize “roll-ups”, which are generally authorized under caselaw.
  6. Eliminate needless enforcement delay during foreclosure when certain tenants are in bankruptcy.
  7. Prevent debtors circumventing isolation requirements.
  8. Eliminate common debtor techniques used to confirming a cram-down plan.

Contact David McCarthy (

  • For a detailed memo on the above items; and/or

To join a working group to vet and propose the changes.


David McCarthy
Managing Director, Head of Policy

The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2023 CRE Finance Council. All rights reserved.

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