Description
Increased interest rates, inflation, cash flow problems, and compressed returns on investment classes have negatively impacted the short- and long-term commercial real estate market across many sectors resulting in an increased number of commercial real estate leases in bankruptcy.
When a commercial tenant has filed for bankruptcy, a set of rules and provisions, often contrary to the terms of the lease, are set into motion often curtailing a landlord’s rights under the lease. The Bankruptcy Code alters, sometimes dramatically, the normal contract rights and obligations of landlords and tenants regarding the timing and payment of rent, as well as the remedies available to enforce such rights and obligations.
While it’s true that the Bankruptcy Code offers protections to both commercial landlords and tenants, it also raises a number of complex legal questions.
A bankruptcy filing exposes the landlord to the risk that the debtor tenant will “reject” the lease and impair the landlord’s ability to collect future rent and other expenses, and the “cap” on damages may leave certain kinds of damages uncompensated.
Join us for this 60-minute webcast as our expert panel takes an in-depth look at the Bankruptcy Code provisions pertaining to unexpired commercial leases and how both landlords and tenants can successfully navigate the chapter 11 process.
Topics to be discussed include:
- The automatic stay’s impact on unexpired leases of non-residential real property
> Rights afforded to a tenant
> Limitations on landlord’s rights
- Tenant’s options regarding its unexpired non-residential real property leases generally (subject to business judgment rule)
> Rejection
> Assumption
> Assumption and assignment
- Time limitations within which tenants must act with respect to unexpired non-residential real property leases
- Rejection of unexpired non-residential real property leases
- Assumption or assumption and assignment of unexpired non-residential real property leases
- Tenant’s obligations pending its decision to reject, assume or assume and assign its non-residential real property leases
- Landlord’s claims against a tenant’s bankruptcy estate
- Special considerations for tenants when a landlord for non-residential real property commences bankruptcy
This program is for attorneys who need a deeper understanding of the issues presented by a bankruptcy filing in the context of commercial real estate and landlord / tenant relationships.