The 3rd Circ. Interpretation Of 'Stub Rent'

Law360, New York (September 13, 2010, 1:41 PM EDT) -- In re Goody's Family Clothing Inc.[1] adds another piece to the Third Circuit’s interpretation of Section 365(d)(3) of the Bankruptcy Code. Section 365(d)(3) applies to leases of nonresidential real property and requires a lessee in bankruptcy to timely perform its post-petition lease obligations until the lease is assumed or rejected.

Goody’s addresses the treatment under Section 365(d)(3) of “stub rent,” that is rent for the remainder of the month after a lessee files its bankruptcy petition. The opinion is an important corollary to the court’s decision...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.