The COVID-19 pandemic has caused crippling cash constraints for businesses of all types, but it has dealt a particularly severe blow to restaurants and brick-and-mortar retailers. Many national restaurants and retailers have already filed for bankruptcy protection, and many others at the national, regional, and local level are likely to follow suit in the coming months. But retailers aren't the only businesses facing tough times. All business segments are struggling and office, medical office and industrial landlords may be facing tenant bankruptcies as well. Dealing with bankrupt tenants can be challenging for commercial landlords, especially those who do not understand the unique and sometimes confusing ground rules applicable in this setting.
Parker Poe’s team of bankruptcy attorneys will provide practical guidance to commercial landlords for mitigating the risks associated with tenant bankruptcy filings. This presentation will address:
· What to do immediately upon learning of a tenant’s bankruptcy filing
· Landlord’s rights after a bankruptcy petition is filed but before the lease is assumed or rejected
· Requirements for a lease to be assumed in bankruptcy, including curing of defaults and adequate assurance or future performance
· Consequences of rejection of a lease in bankruptcy, including calculation of rejection damage claims
Intended Audience: Anyone who deals with commercial tenant bankruptcies, including property managers, CFOs, controllers, and in-house counsel