Single Asset Real Estate

Summary Judgment Motions on determination of "Single Asset Real Estate" entities: On March 12, 2007, the Court issued an opinion determining that the Debtor-Affiliates are, in fact, "single asset real estate" entities. The Court was not persuaded that the constructing and selling of single family homes and the activities related to the sale of homes are substantial "business operations." Therefore, the Court held that the Debtor-Affiliates fall within the definition of "single asset real estate." Pursuant to Bankruptcy Code, the Debtor-Affiliates have 30 days to either file a plan of reorganization or commence making interest payments to the secured lenders.