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.

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Practical Guidance Updates
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• 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.
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