Q&A with MaryBeth Heydt Regarding her Recent Panel on Stalking Horse Real Property Sales

November 2023

How did you come to participate in the panel?

I organized the panel, along with Mike Davis of the Business Law Section Executive Committee.  I started the wheels in motion in January 2023 after receiving positive feedback from the Real Property Section Executive Committee.  I have some experience working on stalking horse sales with bankruptcy counsel, so I understand the crucial partnership between the two areas of law and practitioners to create a successful client outcome.

Why was this subject important to address? 

In our current economy, clients seek new ways to meet their real estate investment goals.  As lawyers, it’s a win-win to help our clients meet their goals.

If there are a few key lessons that you want audience members to take away from the program, what would they be?

There is value in real estate and bankruptcy lawyers collaborating on stalking horse transactions.  We both bring valuable know-how to the table.  Real estate transactional lawyers can end up underwater quickly in a bankruptcy court setting if you add the litigation aspects, along with the due diligence, title, and purchase aspects.  Similarly, a thorny title report, zoning issues, or tough lease terms, may not be the bankruptcy practitioner’s bailiwick.  

I understand this panel was a crossover event with the Business Law Section. Can you tell me about the collaboration you observed between the two sections on this panel?

It was a great experience.  The bankruptcy lawyers from the Business Law Section took it very seriously and we all spent a lot of time on Zoom calls together, working on various materials and a case study to help demonstrate the legal principles in application.  I feel I made some new connections with whom I can pick up the phone and ask a bankruptcy question and vice-versa.  New connections I feel totally comfortable referring a client to with a bankruptcy issue and rest assured they will be in good hands.  

Is there anything else you would like to share about the event? 

Please check it out via on-demand while you can and let us know how we did! 

https://cla.inreachce.com/Details/Information/2389ef60-0df5-4fc3-a135-075400067dc8

Also, let us know if there are any other topics you’d like to see the Real Property Section cover (real estate or a cross-over topic with another CLA section).