Banker & Tradesman has published "Understanding Landlord and Tenant Rights in Bankruptcy" by David Mawhinney. In light of the impact of the initial wave of COVID-19, commercial lease restructuring is expected to be crucial in business survival. Below is an excerpt from the article discussing some of the options tenants may have if their business files for Chapter 11 protections.
First, the bankruptcy code overrides automatic termination provisions that are triggered with the bankruptcy filing. Second, the tenant can reject a burdensome lease and pay the landlord what might be a fraction of the liquidated damages under the contract.
Continue reading the full article in Banker & Tradesman.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.