Like many mergers, the merger of sale-leasebacks and art financing looks irresistible from a distance. However, a recent New York appellate decision (Shagalov v. Edelman, 161 A.D.3d 455
(N.Y. App. Div. 2018) obtained by our firm not only highlights the danger of the merger, but also establishes a precedent that should caution financiers when using sale-leasebacks. Sale-leasebacks are a well-accepted method of corporate financing, particularly for real estate and machinery. In sale-leaseback financing, the asset owner sells it to a financing source, which in turn leases
the asset back to the original owner…READ MORE
Michael C. Ward