News & Analysis as of

Chapter 11 Rent

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Splits the Baby on Real Estate Landlord’s Claim for Unpaid Postpetition Rent

A chapter 7 trustee-lessee’s failure to comply with postpetition, pre-rejection lease obligations does not automatically give the landlord an administrative expense claim, as some courts fashion alternative remedies on a...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

Proskauer Rose LLP

Key Issues When Navigating A Tenant's Bankruptcy

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Recently, two significant distressed companies with thousands of commercial leases, Rite Aid Corp. and WeWork Inc., each filed Chapter 11 bankruptcy cases, seeking in part to rationalize their geographic footprints through...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

Holland & Knight LLP

Frustration of Purpose and Impossibility Doctrines in the COVID-19 Era

Holland & Knight LLP on

In a survey of cases in federal, state and bankruptcy courts, commercial tenants seeking to delay or excuse the payment of rent because of pandemic-related downturns in business sometimes looked to the equitable doctrines of...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

Cozen O'Connor

Congress Enacts Modification to Bankruptcy Procedures Governing Assumption and Rejection of Leases

Cozen O'Connor on

The Consolidated Appropriations Act of 2021 (the Appropriations Act) is a $2.3 trillion spending bill that combines stimulus relief for the COVID-19 pandemic and an omnibus spending bill for the federal fiscal year. ...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

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Denies Retail Debtor’s State-Law Based Arguments to Avoid Paying Rent During Chapter 11

A recent Chuck E. Cheese decision rejects the debtor’s/tenant’s request to avoid paying rent based upon state law equity arguments. CEC’s leases expressly do not permit rent relief even if force majeure is triggered. ...more

Pillsbury Winthrop Shaw Pittman LLP

Bankruptcy Court Rules Bankruptcy Code Does Not Permit Extended Rent Holiday for Retail Debtors

A recent Chuck E. Cheese decision denies the debtor’s/tenant’s request to defer paying rent after the 60-day “rent holiday.” The Bankruptcy Court applied the “plain language” rule to hold that section 365(d)(3)’s rent...more

Seyfarth Shaw LLP

Bankruptcy Court Denies Debtors’ Motion to Abate Rent Due To COVID-19 Government Shutdown Orders

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On December 14, 2020, Judge Marvin Isgur of the United States Bankruptcy Court for the Southern District of Texas, issued an important decision in the CEC Entertainment, Inc. (Chuck E. Cheese) bankruptcy case, Case No....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

Ward and Smith, P.A.

Leases, Bankruptcy, and Coronavirus: Force Majeure Edition

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Many businesses in bankruptcy or heading that way – particularly retail establishments – face an uncertain future as states and cities impose closures and phased re-openings. If you lease your office, storefront, or...more

Ballard Spahr LLP

Recent Bankruptcy Court Case the First to Provide Pandemic-Related Rent Relief to a Tenant Under a Force Majeure Clause

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The United States Bankruptcy Court for the Northern District of Illinois – Eastern Division recently held that a lease’s force majeure clause sustained a claim for rent abatement arising out of the COVID-19 pandemic. Both...more

Miller Canfield

Bankruptcy Court Says Force Majeure Clause Partially Excuses Rent Payment Due To COVID-19 Executive Order

Miller Canfield on

Restaurants, retail stores, and other businesses around the country have been uniquely hit by COVID-19 - and by the executive orders shuttering their in-person services that quickly followed in its wake. Recently, the United...more

Foley & Lardner LLP

Sixth Circuit Court of Appeals Holds Properly Perfected Assignment of Rents Not Property of Bankruptcy Estate

Foley & Lardner LLP on

In a significant ruling impacting commercial real estate lenders in Michigan, the 6th Circuit Court of Appeals has ruled that an absolute assignment of rents that had been fully perfected (by demanding payment from tenants to...more

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