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Chapter 11 Landlords Debtors

Jones Day

New York District Court: Cap on Landlord Claims in Bankruptcy Applies to Claims Against Lease Guarantors, and Cap Should Be...

Jones Day on

To prevent landlords under long-term real property leases from reaping a windfall for future rent claims at the expense of other creditors, the Bankruptcy Code caps the amount of a landlord's claim against a debtor-tenant for...more

Levenfeld Pearlstein, LLC

Commercial Real Estate Disputes in Subchapter V Chapter 11 Cases: Landlord and Tenant Rights in Bankruptcy Proceedings

The treatment of commercial lease liabilities in chapter 11 cases is a frequent point of contention in commercial bankruptcy proceedings. Landlords and tenants often clash over when (and how much) rent is due when filing for...more

Jones Day

Default Under Assumed Lease Need Not Be Material or Ongoing to Trigger Landlord's Entitlement to Adequate Assurance of Future...

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The ability of a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") to assume, assume and assign, or reject executory contracts and unexpired leases is an important tool designed to promote a "fresh start" for...more

Husch Blackwell LLP

Retail Apocalypse Part II? What Trade Creditors and Landlords Can Do To Protect Themselves

Husch Blackwell LLP on

At the outset of the Covid-19 pandemic, some commentators were preparing for a mass extinction event in the retail industry, characterized by hundreds of brick-and-mortar store closings, massive job losses, and numerous...more

Bowditch & Dewey

The Impact of Recent Amendments to the United States Bankruptcy Code on Lenders

Bowditch & Dewey on

On March 27, 2021, President Biden signed into law the COVID-19 Bankruptcy Relief Extension Act (the Extension Act). The Extension Act temporarily extends certain bankruptcy relief provisions that were enacted as part of the...more

Bradley Arant Boult Cummings LLP

A Business Bankruptcy Overview: How Subchapter V, the CARES Act and the Consolidated Appropriations Act Have Expanded Relief for...

In February 2020, just prior to the COVID-19 outbreak, the Small Business Reorganization Act of 2019 (Subchapter V) took effect. Subchapter V amends Chapter 11 of the Bankruptcy Code to allow certain individuals and...more

Holland & Knight LLP

Congress Enacts Temporary Bankruptcy Relief Related to COVID-19

Holland & Knight LLP on

Congress passed new, temporary bankruptcy relief measures late last year that impact certain commercial landlords and tenants. Among other things, the new legislation, which was signed into law on Dec. 27, 2020: 1) extends...more

Bowditch & Dewey

Rent Abatement, PPP Loans (Maybe), and Other Bankruptcy Relief in the Appropriations Act

Bowditch & Dewey on

On December 27, 2020, the Consolidated Appropriations Act, 2021 became law. In addition to funding the government and providing coronavirus relief, the Act contains several intriguing amendments to the Bankruptcy Code. The...more

Bowditch & Dewey

Delaying the Inevitable? Pier 1, Chuck E. Cheese, and Rent Abatement in Bankruptcy

Bowditch & Dewey on

The coronavirus pandemic has been particularly cruel to brick-and-mortar retail establishments. As rising infection rates force municipalities to roll back reopening plans, retail and hospitality businesses that rely on...more

Pullman & Comley, LLC

Can a Lease Terminated Under State Law be Revived in the Tenant's Bankruptcy?

Pullman & Comley, LLC on

In these troubled times when lease and other contract defaults, as well as bankruptcies, abound, it may be useful to reexamine what happens to a lease of commercial real estate when it has been terminated in accordance with...more

Pillsbury Winthrop Shaw Pittman LLP

The Letter of Credit Conundrum: When a Debtor’s Default May Be Preferable to Its Late Payment

“Can an unsecured creditor be better off when the debtor defaults rather than paying off the debt? Yes: Law can be stranger than fiction in the Preference Zone.”—Ninth Circuit Untimely payment by tenants and other obligors...more

Hahn Loeser & Parks LLP

Illinois Bankruptcy Court Holds That Statewide Shutdown Order Triggered Force Majeure Clause

Earlier this month, the United States Bankruptcy Court for the Northern District of Illinois held that a force majeure clause in a lease partially excused a restaurant from paying rent after the restaurant closed as a result...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Bankruptcy Courts are Easing Traditionally Rigid Lease Payment Requirements for Commercial Tenants In COVID-Related Filings

Bankruptcy courts in multiple jurisdictions have granted tenant-friendly relief to companies that have filed for Chapter 11 bankruptcy in recent months. While the Bankruptcy Code typically requires timely performance of lease...more

Lowenstein Sandler LLP

How to Use and Not Use Chapter 11 in Bad Economic Times

At the moment, the bankruptcy court may be an unfriendly place for impatient lenders. As the United States and much of the world reel from the coronavirus pandemic, many businesses’ revenues have been shut off (or close to...more

Dechert LLP

Increased Rent Provision as an Anti-Assignment Clause

Dechert LLP on

Section 365(f) of the Bankruptcy Code allows the assignment of leases and executory contracts notwithstanding any provision in the contract or the applicable law that “prohibits, restricts, or conditions the assignment….” So,...more

Goulston & Storrs PC

“Retail Apocalypse: The End – Or A New Beginning?”

Goulston & Storrs PC on

The last several years have been treacherous for the retail sector.  Changing shopping patterns and shifting demographics have led some commentators to declare that the (retail) apocalypse is upon us. ...more

Snell & Wilmer

Is a Bankruptcy Plan that Violates Federal Criminal Law Proposed in Bad Faith?

Snell & Wilmer on

Although legal in many states, marijuana remains illegal under federal criminal law. See 21 U.S.C. § 856(a)(1). One would think that engaging in illegal activity under federal criminal law would preclude relief under federal...more

Fox Rothschild LLP

Mattress Firm Files Chapter 11 Bankruptcy In Delaware – Commercial Landlords Take Notice

Fox Rothschild LLP on

Earlier this month, Mattress Firm, Inc., and its affiliated debtors (collectively, “Mattress Firm”) filed for chapter 11 protection in the United States Bankruptcy Court for the District of Delaware. Through the bankruptcy,...more

BakerHostetler

Commercial Tenant Debtors in Chapter 11: Fundamentals of Landlord Creditor Protection in Bankruptcy

BakerHostetler on

Commercial landlords have unique protections in bankruptcy, but can lose these rights if they do not assert them. When a commercial tenant files bankruptcy under Chapter 11, the landlord must carefully monitor filings and...more

King & Spalding

Ninth Circuit Rules Lease Damages Cap Does Not Apply to Damages Independent of Termination

King & Spalding on

On December 29, 2016, the U.S. Court of Appeals for the Ninth Circuit (the “Court”) issued an opinion, holding that the statutory cap on a landlord’s damages claim in a bankruptcy case applies only to claims resulting...more

Kelley Drye & Warren LLP

Landlords Beware: Seventh Circuit Rules That Lease Terminations May Be Voidable In Bankruptcy

The Seventh Circuit Court of Appeals recently handed down a decision with significant implications for landlords contemplating lease termination agreements with distressed tenants. Ruling on a direct appeal in the chapter 11...more

Bradley Arant Boult Cummings LLP

What General Counsel Should Know When a Company's Tenant Files for Bankruptcy

Your tenant files for bankruptcy-what’s your move? Debtors who are lessees under real property leases have certain rights regarding their lease under § 365 of the Bankruptcy Code. Essentially, the debtor has two options: 1)...more

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