Tenant Bankruptcy: Assumption and Rejection of Commercial Leases

Protecting Landlord and Tenant Interests Under the Bankruptcy Code

Recording of a 90-minute CLE webinar with Q&A


Conducted on Thursday, June 7, 2012

Recorded event now available

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Program Materials

This CLE webinar will provide practitioners with a review of commercial lease treatment under the Bankruptcy Code, discuss the debtor’s right to assume, reject or assign executory leases, and outline best practices for both landlords and tenants seeking to protect their rights and interests in the lease.

Description

The Bankruptcy Code has a major impact on commercial real property leases in that it provides the debtor wide latitude in the assumption, assignment or rejection of unexpired leases. There are also provisions in the Code specific to shopping center leases.

Tenants can assume a lease by curing defaults and providing adequate assurance of future performance, which is not clearly defined in the Code and is subject to interpretive case law. Rejection of the lease leaves the landlord with an unsecured claim for unpaid rent, with a strict damages cap.

Retail tenants continue to struggle with BAPCPA’s 120-day firm deadline for assuming or rejecting a lease that can hamper efforts to put together a reorganization plan. Landlords must be vigilant in taking advantage of this short time frame.

Listen as our experienced panel of bankruptcy counsel guides you through the maze of bankruptcy rules for assumption or rejection of leases in tenant bankruptcies and discusses strategies for landlords and tenants to protect their rights and interests in the lease.

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Outline

  1. Debtor’s lease obligations pending assumption or rejection
  2. Debtor’s rejection of lease and damages cap
  3. Debtor’s assumption of lease and adequate assurance of future performance
  4. Assumption/rejection deadlines

Benefits

The panel will review these and other key questions:

  • Is the debtor obligated to pay all amounts arising from its post-petition lease obligations if there are insufficient funds to satisfy other administrative expense claims?
  • What factors will the court consider in allowing the debtor to renew a lease pending assumption or rejection despite uncured defaults?
  • What is the debtor's burden of providing adequate assurance of future performance when seeking to assume a lease?
  • What has been the impact of the tight deadlines for assuming or rejecting leases in debtor reorganizations and how can landlords leverage that advantage?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.

Faculty

George M. Cheever
George M. Cheever

Of Counsel
K&L Gates

Mr. Cheever represents debtors, lenders, trade suppliers, landlords, and other creditors, purchasers of assets of...  |  Read More

Griffin S. Dunham
Griffin S. Dunham

Atty
MGLAW

He concentrates his practice in the areas of Chapter 11 bankruptcy reorganizations, insolvency and distressed business...  |  Read More

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