Effective Date of the RAIT Chapter 11 Plan

On Jan. 29, 2020, the United States Bankruptcy Court for the District of Delaware confirmed the Joint Chapter 11 Plan of RAIT Funding LLC, a real estate investment trust and its affiliated Debtors (RAIT). The Chapter 11 plan went effective on March 27, 2020.  Kramer Levin represented the creditors’ committee which included indenture trustee Bank of New York Mellon Trust, indenture trustee UMB Bank, bondholder Rangeley Capital and bondholder Matthew Page. 

The creditors’ committee, with the advice of Kramer Levin and FTI Consulting, the committee’s financial advisor, worked collaboratively with the debtors on a process to sell substantially all of the debtor’s assets. After an extensive marketing process, the assets were sold to the stalking horse purchaser (which was an affiliate of Fortress) for approximately $170 million. The creditors’ committee also successfully opposed multiple attempts by an ad hoc group of equity holders to delay and up-end the sale and plan process. The plan provides for payment in full in cash of all senior noteholder claims and other general unsecured claims and partial payment (with the ability to realize additional value from retained causes of action) to the junior subordinated noteholders. Following confirmation, Kramer Levin worked closely with the debtors to ensure efficient distributions to general unsecured creditors. 

The Kramer Levin team included special counsel Jennifer R. Sharret, and associates Priya K. Baranpuria and Nancy Bello.