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Landlords Commercial Tenants Bankruptcy Court

Stark & Stark

5 Issues for Landlords During a Bankruptcy Lease Rejection

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When a commercial tenant files for bankruptcy, they have the option to assume or reject unexpired leases. A bankruptcy lease rejection is a significant action, as it communicates the debtor’s intent to hand back the space....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

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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

Bradley Arant Boult Cummings LLP

Guest Notebook: New Law Offers Rent Relief for Commercial Tenants

At the end of 2020, Congress enacted the Consolidated Appropriations Act, 2021, partially in response to the COVID-19 pandemic and resulting economic crisis. While funding the federal government and preventing a government...more

Herbert Smith Freehills Kramer

Texas Bankruptcy Court Determines Bankruptcy Code does not Permit it to Delay Debtor Rent Obligations Beyond 60-Day Statutory...

In In re CEC Entertainment, Inc., et al., 20-33163, 2020 WL 7356380 (Bankr. S.D. Tex. Dec. 14, 2020), the Bankruptcy Court for the Southern District of Texas held that the Bankruptcy Code does not permit the court to alter a...more

Bowditch & Dewey

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

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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

Farella Braun + Martel LLP

What to Do When Commercial Leases End Up in Bankruptcy

The COVID-19 pandemic is forcing many businesses to close, leaving landlords in the lurch. The COVID-19 pandemic continues to shake up the nation’s economy. Long-standing companies such as JC Penney, J. Crew, Neiman...more

Bowditch & Dewey

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

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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

Jones Day

Force Majeure Clause Triggered by Pandemic Shutdown Order Partially Relieves Chapter 11 Debtor from Timely Paying Postpetition...

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With their doors closed by mandatory government shutdown orders in effect until most states started gradually reopening in May and June, many businesses have found it difficult or impossible to satisfy their lease obligations...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

Pillsbury Winthrop Shaw Pittman LLP

Court Holds COVID-19 Executive Order Triggers Lease’s Force Majeure Clause, Excusing Some Rent Obligations

Illinois Governor’s Executive Order prohibiting sale of food or beverages for on-premises consumption held to partially excuse restaurant tenant’s rent payment obligations. Bankruptcy Court finds that Executive Order...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

Lowenstein Sandler LLP

Sears (MOAC v. Transform): Landlord May Rest (Adequately) Assured of ‘Similar’ Financial Condition and Operating Performance, But...

A recent decision from the United States District Court for the Southern District of New York (the District Court) in the bankruptcy cases of Sears Holdings Corp. may loom large in a day and age when shopping mall operators...more

Ward and Smith, P.A.

What Happens to My Lease in Bankruptcy?

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Suppose you own farmland or retail commercial space and you lease your property. What happens to your lease if the lessee files bankruptcy? And what must be done if your lessee wants to continue to honor your lease...more

Rosenberg Martin Greenberg LLP

In re: Titus – Fraudulent Conveyance Law Defeats Exemption Rights

Many states, including Maryland and Pennsylvania, recognize the common law form of ownership of property as “tenants by the entireties” for both real and personal property, including bank accounts. Under that form of...more

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