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...
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