17 May 2022
Who Wins in Bankruptcy – the Lessee or the Purchaser?
You represent a Chapter 11 debtor that wants to sell its property free and clear of its tenant’s possessory interest. The tenant wants to retain its rights for the rest of the lease. You need to figure out whether the debtor can extinguish the rights of the tenant through a sale under Section 363(f) of the Bankruptcy Code. The Fifth Circuit recently weighed in on this question.
Related Content
- Bankruptcy Risks to Tenant When Landlord Files a Bankruptcy Case
Learn about protections afforded to landlords and the bankruptcy risks to the tenant.
- Bankruptcy Risks in Subleasing
Read this practice note for a discussion of the risks to sublessees, sublessors, and overlandlords when another party to a sublease or overlease files bankruptcy.
- Rejection and Assumption of Commercial Leases Video
Watch this video for highlights of the key requirements for the debtor to assume and reject commercial leases.
- Assumption, Assignment, and Rejection of Executory Contracts
See this practice note for the general requirements for assuming, assigning, and rejecting executory contracts and unexpired leases under Section 365 of the Bankruptcy Code.
- Special Considerations for Assumption, Assignment, and Rejection of Certain Executory Contracts
Review this practice note for an overview of the requirements for assuming, assigning, and rejecting shopping center leases and other agreements governed by specific sections of the Bankruptcy Code.
Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.
- Fifth Circuit Rules That Chapter 11 Debtors May Reject Filed-Rate Contracts without FERC Permission
- Mega Chapter 11 Filings Tracker
- Subchapter V Decision Tracker
- The Practical Guidance Journal Spring 2022 Edition reviews differences between Chapter 7 and Chapter 13 of the Bankruptcy Code.
- Check out the new Practical Guidance Author Center! Learn about the 1500+ leading attorney authors contributing to our 21 practice areas, and find out how you can Become a Practical Guidance Author.
- Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
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