Retail and Office Bankruptcy: Landlord/Tenant Rights

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Landlord issues have become big-ticket items in many larger bankruptcy cases. Unanticipated changes in the case law require leasehold mortgagees and other lenders to be more vigilant about actions taken during the course of the case. This is evidenced by recent case law holding that a debtor can sell its assets free and clear of virtually any interest, including a leasehold estate that is subject to a mortgage. Landlords who suffer large monetary damages due to a tenant’s bankruptcy, which might be recoverable under state law, continue to discover that the effect of the damages “cap” imposed by the Code has severe consequences, and that important legal rights can be lost through momentary inadvertence or failure to protest certain debtor actions vigorously. These problems are the same for both small and large cases, and this guide seeks to address the needs of professionals who deal with cases of any size. It also covers the intricacies of one of the most complex parts of the Code, § 365. It is an essential reference for anyone dealing with the rapidly shifting landscape of the retail world.
Author David R. Kuney