One important effect of a debtor’s bankruptcy filing is the impact the bankruptcy filing has on unexpired leases, particularly for lessors. The rights and obligations of the lessors under the unexpired leases depend on a multitude of factors. These factors include, but are not limited to, the chapter under which the debtor filed and the type of property subject to the unexpired lease. Our expertise in litigating and resolving any issues that may arise has led Bernstein-Burkley’s bankruptcy and restructuring team to the forefront of other bankruptcy firms. For decades, our attorneys have successfully counseled lessors of equipment, residential property and non-residential real property under unexpired leases upon the filing of a bankruptcy petition. Our knowledge and understanding of the nuances between chapter 7 and chapter 11 filings, and between the types of property subject to the unexpired lease, has facilitated many favorable results.
Assumption of an Unexpired Lease
Our attorneys understand the importance of ensuring that our clients’ unexpired leases are assumed, as this preserves an ongoing business relationship and offers other benefits. If the debtor intends to assume an unexpired lease, the debtor must address any existing defaults and provide adequate assurance that, following assumption of the unexpired lease, the debtor will continue to perform. Our bankruptcy and restructuring attorneys work on behalf of our clients to ensure that, if a debtor intends to assume an unexpired lease, the debtor cures all existing breaches and provides our client with assurances that it will timely perform all obligations under the unexpired lease.
Rejection of an Unexpired Lease
Regardless of the chapter under which the debtor filed or the type of property in question, debtors have the almost unfettered right to assume or reject any unexpired lease. In the event the debtor rejects the unexpired lease, our attorneys are experts in protecting and preserving our clients’ rights to claim damages for the rejection of the lease, and recover the property that was subject to the lease.
Regardless of whether the debtor assumes or rejects an unexpired lease, our bankruptcy and restructuring attorneys are committed to securing the best possible result for our clients.
If you have any questions regarding Bernstein-Burkley’s Bankruptcy & Restructuring services, please contact us at 412-456-8100.
