News & Analysis as of

Chapter 11 Commercial Leases Landlords

Mintz

Understanding the Statutory Cap on Landlord Claims for Rejected Leases in Bankruptcy

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The number of corporate bankruptcy filings has increased significantly over the past several years. In 2024, there were 688 chapter 11 filings by private companies with either assets or liabilities greater than $2 million or...more

Arnall Golden Gregory LLP

Restructuring Roundup - June 2025

AGG’s Restructuring Roundup newsletter is a monthly update of legal issues and news affecting or related to commercial litigation and bankruptcy. The newsletter is a curation of published articles and news, and contains...more

Arnall Golden Gregory LLP

What Commercial Landlords Need to Know About a Tenant’s Bankruptcy

Introduction - Despite the parties’ best intentions at the beginning of a commercial lease, landlords will inevitably encounter tenants in financial distress. Ultimately, some tenants will seek protection in bankruptcy,...more

Jones Day

Second Circuit: Bankruptcy Code's Lease Assumption and Assignment Provisions Apply Only to "True Leases"

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The ability of a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") to assume and assign executory contracts and unexpired leases is an invaluable tool for generating value for a bankruptcy estate to pay creditor...more

Farrell Fritz, P.C.

JOANN, Inc. to Close 500 Stores Nationwide

Farrell Fritz, P.C. on

On January 15, 2025, JOANN Inc. commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. That was the second bankruptcy filing in a year for JOANN, an 82-year old fabric and craft...more

Stark & Stark

A BIG LOTS Chapter 11 Lesson: Caution Needed When Doing Business with Chapter 11 Debtors

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Vendors, landlords, and other creditors often feel a sense of security when doing business with Chapter 11 debtors. The Bankruptcy Code, and even court orders entered at the outset of a bankruptcy case, seemingly provide a...more

Stark & Stark

4 Lease Auction Tips for Landlords

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During a retail bankruptcy, commercial landlords often face challenges when their tenants try to maximize the value of the bankrupt estate by holding lease auctions. Despite lease provisions that may restrict or prohibit a...more

Troutman Pepper Locke

Delaying Rent Payment by Assisted Living and Skilled Nursing Facilities in Chapter 11

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The lifeblood of any debtor operating in Chapter 11 is access to cash to maintain ongoing operations. This is particularly important in cases involving assisted living and skilled nursing facilities given the health, safety,...more

DLA Piper

US Bankruptcy Court rules on lease classification for skilled nursing and long-term care facilities

DLA Piper on

The US Bankruptcy Court for the Western District of Pennsylvania issued a memorandum opinion on November 15, 2024, holding that a real property lease for a skilled nursing, long-term care, and rehabilitation facility should...more

Nutter McClennen & Fish LLP

Tenant’s Rights When Its Commercial Landlord Seeks Chapter 11 Protection

Financial distress persists in the commercial real estate market, raising the prospects that property owners and landlords could seek relief under chapter 11 of the Bankruptcy Code. The Bankruptcy Code contains numerous...more

Pillsbury Winthrop Shaw Pittman LLP

Conflicting Court Rulings on Subchapter V Eligibility Leave Small Businesses in Limbo

Two recent bankruptcy court decisions reflect a split of authority on subchapter V eligibility. In re Macedon Consulting Inc. finds that all future amounts due under an unexpired lease qualify as “noncontingent and...more

Holland & Knight LLP

The Real Estate and Corporate Restructuring Connection, Plus Retail Restructuring Trends

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The transition to online shopping, interest rate increases, labor costs, maturing debt and rising inflation have collectively taken a significant toll on the retail industry, contributing to store closures and a growing...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

Nutter McClennen & Fish LLP

FAQs for Commercial Landlords When a Tenant Files Chapter 11

When a tenant under an unexpired lease of nonresidential real property files a case under chapter 11 of the Bankruptcy Code, both tenant and landlord acquire rights and obligations that may contravene the terms of the lease...more

Miller Canfield

Sunset of Certain Bankruptcy Code Changes

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As we previously reported, the Bankruptcy Code saw many changes in 2020 and 2021. Some of the changes that were enacted under the Consolidated Appropriations Act, 2021 ("CAA") will soon end....more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Holds Debtor-Assignor Is Not Off the Hook for Pre- and Post-Assignment Damages Under Lease Assigned...

If you really want to be released from your lease obligations and those of your assignee, you need to get a landlord release at the time of assignment. An assignor tenant’s lease obligations survive an otherwise permitted...more

Holland & Knight LLP

Landlords Beware: Bankruptcy Court Litigation Could Come at a Cost

Holland & Knight LLP on

Those who lease commercial property may find themselves unwilling participants in complex proceedings before the U.S. bankruptcy courts when a tenant files bankruptcy. Meanwhile, the lease becomes an asset among the "property...more

Weintraub Tobin

The Importance Of Lease Drafting: Lease Language Takes Center Stage In “Cinemex”

Weintraub Tobin on

When in the throes of protracted lease negotiations, frustrated clients often ask me whether a proposed term is truly necessary to the contemplated transaction. Most clients start these discussions with the goal of achieving...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

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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

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

Shutts & Bowen LLP

Post-Bankruptcy Issues for Commercial Landlords – Assumption and Rejection of Leases in Chapter 11 Cases

Shutts & Bowen LLP on

Consider the following - A Chapter 11 bankruptcy case is filed. The landlord now has a tenant that is in bankruptcy. This is a disaster for the commercial landlord, right? Not necessarily. It actually may be of benefit to...more

Blank Rome LLP

Bankruptcy Risks to Landlord When Tenant Files a Bankruptcy Case

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This practice note discusses the risks to the landlord when a tenant files for bankruptcy and the steps a landlord can take to protect itself following a tenant’s bankruptcy filing. Once a tenant enters a Chapter 11...more

Winstead PC

Landlords: “Pausing” Retail Bankruptcies in the Time of COVID-19

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Bankruptcy Code Rent Protection for Landlords: The Bankruptcy Code provides that the company in bankruptcy shall "timely" perform all obligations of a lease arising "from and after" the bankruptcy filing date through the...more

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