5 Key Issues for Landlords to Consider When a Tenant Files for Chapter 11 Bankruptcy
The COVID-19 crisis has created a surge in corporate bankruptcies across the globe. As a result, commercial landlords have been forced to deal with more tenants, particularly in the retail industry, who are in, or on the verge of, Chapter 11 bankruptcy.
In a recent article published on CoreNet Global’s blog, The Pulse, David Dragich discusses 5 issues that a landlord should take into consideration in order to understand its rights, exercise its remedies, and recover as much as possible under a lease agreement with a bankrupt tenant.
In the article, Dave answers the 5 following questions:
- What is the effect of a tenant’s bankruptcy on a lease?
- What are a tenant’s obligations with respect to lease payments during bankruptcy?
- What is the “automatic stay” and what impact does it have on a landlord’s ability to enforce its lease remedies?
- What are a landlord’s rights when a tenant seeks to assign a lease to a third party?
- Is a landlord entitled to damages when a tenant rejects a lease?
Click here to read the full article on The Pulse. CoreNet Global is a non-profit association, headquartered in Atlanta, Georgia, representing more than 11,000 executives in 50 countries with strategic responsibility for the real estate assets of large corporations.