Sixth Circuit Upholds Assignment of Rents to Secured Lender

On May 2, 2017, the U.S. Court of Appeals for the Sixth Circuit reversed the bankruptcy court’s holding that gave the Chapter 11 debtor access to the assigned rents as operating funds during its reorganization. In this article, special counsel Michael Cook outlines the facts of the Town Center Flats LLC case and provides expert analysis into the court’s decision.