News & Analysis as of

Chapter 11 Lease Termination

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

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

Jones Day

New York Bankruptcy Court Breaks from Precedent in Ruling that "Time Approach" Should Be Used to Calculate Landlord's Claim for...

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

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

Kramer Levin Naftalis & Frankel LLP

Bankruptcy Court Holds That Termination of Lease Does Not Equal Termination of Estate Property

The Bankruptcy Court for the Eastern District of Michigan recently held, in In re Indiana Hotel Equities, LLC, No. 18-45185 (Bankr. E.D. Mich. June 18, 2018) [ECF No. 47], that the early termination of a lease on...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

Burr & Forman

Termination of a Commercial Lease May be an “Avoidable Transfer” in Bankruptcy, holds Seventh Circuit

Burr & Forman on

In March 2016, the U.S. Court of Appeals for the Seventh Circuit ruled that a landlord may be liable to a debtor’s bankruptcy estate for the value of a lease the debtor terminated early, holding the termination may be an...more

Nutter McClennen & Fish LLP

Terminating a Distressed Tenant’s Lease? Plan Now to Defend a Possible Bankruptcy Avoidance Action Later

Landlords contemplating terminating a lease with a distressed tenant in advance of a possible tenant bankruptcy will want to consider carefully a recent decision from the Seventh Circuit. The decision, In re Great Lakes Quick...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

Troutman Pepper

Bankruptcy Sales: It Is A Good Idea To Confirm You Are Acquiring Everything You Need Before You Close

Troutman Pepper on

Agri Star Meat & Poultry, LLC v. Nevel Properties Corp. (In re Nevel Properties Corp.), 765 F.3d 846 (8th Cir. 2014) – The purchaser of assets from one bankruptcy debtor objected to the plan of reorganization filed by...more

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