Protecting the Landlord in a Tenant Bankruptcy: Selected Issues and Strategies for Getting Paid
May 22, 2013
Sponsored by ALI CLE
Property owners across the country have been plagued by this question since the economic downturn that resulted in unprecedented commercial lease defaults and forced many commercial properties into bankruptcy proceedings.
The key topics for discussion include:
- securing payment by the debtor prior to assumption and rejection
- ensuring payment if the debtor seeks to assume the lease (the cure obligation and adequate assurance of future performance)
- payment when the debtor rejects the lease
- analysis of the cap on the rent claim
- large rent claims (e.g., environmental, restoration, and construction damages)
- use of letters of credit in conjunction with the cap
- procedure to obtain an order for eviction, if appropriate