A Big Bankruptcy Benefit: Assuming or Rejecting an Unexpired Lease Under Section 365 of the Bankruptcy Code
A Big Bankruptcy Benefit: Assuming or Rejecting an Unexpired Lease Under Section 365 of the Bankruptcy Code Imagine a situation where a commercial tenant files a Chapter 11 bankruptcy. Section 365 of the Bankruptcy Code allows the debtor-tenant to assume or reject an unexpired lease or assign it to a third party. At first blush, it might seem entirely beneficial to the tenant and disastrous for a landlord. However, the Bankruptcy Code offers some protection to landlords. Let’s walk through a common example to demonstrate the options available to a debtor-tenant and landlord in the event the tenant files for chapter 11 bankruptcy...
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