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December 3, 2019

Law360: Retail Bankruptcies Raise Collection Questions for Landlords

Nic Ferland and Kevin Newman, both partners, and Scott Fleischer, counsel, recently had their “Retail Bankruptcies Raise Collection Questions for Landlords” article published by Law360. The article discusses what landlords can and can’t recover from a debtor-tenant while it is in bankruptcy as well as how various provisions of the federal Bankruptcy Code interact with the two main approaches utilized in different jurisdictions to determine whether leasehold obligations must be paid.

“Anyone can read the Bankruptcy Code provisions that apply most often in a retailer’s bankruptcy case. For landlords, however, it’s not that simple when their tenant is now a debtor in possession, or DIP, and they are left wondering what they can (and can’t) collect. Many of the most important concepts in retail bankruptcies—the automatic stay, stub rent, real estate taxes, and cure—are colored by case law interpreting the Bankruptcy Code and play out differently depending on where a bankruptcy case is filed.”

Read the full article here.

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