The Landlord-Tenant Relationship Post-Bankruptcy

By Stuart Brown and Grace Imafidon, DLA Piper (November 17, 2016, 3:36 PM EST) -- Stuart Brown

Grace Imafidon The U.S. Bankruptcy Court for the District of New Jersey has issued a ruling that could have a significant impact on future restructurings in which a third party acquires distressed property assets that are already tenanted. The right of a debtor in possession or trustee, subject to the court's approval, to reject an executory contract or unexpired lease that is not in the debtor's best interest is enshrined in §365 of the Bankruptcy Code. Important exceptions to this rule, however, exist pursuant to §365(h) of the code that limit the right to reject unexpired leases where the...

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