Retail Bankruptcies Raise Collection Questions For Landlords

Law360 (December 2, 2019, 4:42 PM EST) -- Anyone can read the Bankruptcy Code provisions that apply most often in a retailer’s bankruptcy case. For landlords, however, it’s not that simple when their tenant is now a debtor in possession, or DIP, and they are left wondering what they can (and can’t) collect. Many of the most important concepts in retail bankruptcies — the automatic stay, stub rent, real estate taxes and cure — are colored by case law interpreting the Bankruptcy Code and play out differently depending on where a bankruptcy case is filed.

There are two approaches taken by bankruptcy courts around the country when it comes...

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