Related insights: Timberland and Agricultural Resources

Fourth Circuit Approves Partial Dirt-for-Debt Plan

Jan 02 2018
Would you like to own that rural timberland you financed a few years back? Well, what if I told you that not only are you taking it into your real estate portfolio, but you’re taking it in exchange for a credit of three times its appraised value? This nightmare scenario is a possible reality in the Eastern District of North Carolina, where “dirt-for-debt” plans are a common strategy of debtors’ attorneys in chapter 11 bankruptcy cases.