Executory Contracts/Leases

Third Circuit Enforces Tenant’s Rights After Debtor’s Sale of Real Property and Rejection of Lease

In IDEA Boardwalk, LLC v. Revel Entertainment Group, LLC (In re Revel AC Inc.), Case No. 17-3607, –F.3d–, 2018 WL 6259316 (3rd Cir. Nov. 30, 2018), the Third Circuit Court of Appeals recently enforced a tenant’s right to offset rent… Read More ›

Fifth Circuit Holds that Disguised Financing is not Entitled to Administrative Priority Claims

“To Lease or Not to Lease?” Whether an equipment lease is characterized as a true lease or a disguised financing in a bankruptcy setting determines what rights and remedies are available to the lessor. For example, if the lease is… Read More ›

Does the Bankruptcy Code Adequately Protect Lessors?

The Bankruptcy Code often instructs a trustee or debtor to perform an act or make an election within a certain time. Sometimes the relevant provisions are intended to benefit a party in interest who is affected by a debtor’s or… Read More ›

Delaware Court Says You Cannot Separate an Integrated Lease

A Delaware Bankruptcy Court recently ruled that a debtor cannot assume only certain portions of a real property lease covering several, separate properties; instead the debtor must assume the entire lease (cum onere) or reject the entire lease.  See In re… Read More ›

Bankruptcy Judge Denies AMR’s Request to Reject Pilot Contracts

(Reuters) – A U.S. judge on Wednesday, August 15, denied a request by American Airlines’ parent AMR Corp. to abandon collective bargaining agreements with its pilots’ union, despite AMR’s goal to save more than $1 billion a year in labor costs. Judge Sean… Read More ›

Cap on Landlord’s Rejection Damages Claim

Pursuant to section 365 of the Bankruptcy Code, a commercial lease tenant is entitled to reject a lease of non-residential real property.  The landlord’s resulting claim for the termination of the lease is capped by section 502(b)(6) of the Code… Read More ›