Charitable use blocks dismissal of landlord’s bankruptcy case
The operation of a charitable food bank on the property of a bankruptcy debtor provides enough hope for revenue to deny a mortgage lender’s request to dismiss the bankruptcy case or permit the immediate foreclosure on the property, according to a Bankruptcy Court in North Carolina. Castle Horizon Real Estate, a limited liability company with two individual members, filed a voluntary petition for reorganization in October 2010. The LLC’s only asset was real estate that was used as their home and formerly operated as a golf course. The owners were also principals in a 501(c)(3) food bank that had begun operation on the premises. They argued that the food bank was beginning to generate revenue...
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