On August 30, 2019, RAIT Funding, LLC (f/k/a Taberna Funding LLC), along with six of its affiliates, filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-11915). According to the accompanying Declaration, the Debtors’ core business is commercial real estate lending. During the period from 2008-2018, the Debtors incurred approximately $1.468 billion in losses as a result of mortgage write-offs, asset write-downs, and losses on the sale of assets. After an earlier, unsuccessful sale process, the Debtors ultimately agreed to a stalking horse purchase agreement with Fortress Credit Advisors LLC on August 30, 2019.
The Debtors presently report assets valued at between $100-500 million and liabilities in the same range. Funds are expected to be available for distribution to unsecured creditors. The cases have been assigned to the Honorable Brendan L. Shannon.
Cole Schotz does not represent the Debtors in this case. We are posting this for informational purposes only. If you have received a notice and have any questions, you should contact Debtors’ counsel.