Retail Debtor’s Bid for “Super” Rent Holiday and Rent Abatement Denied

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“With little to no revenue at many locations, retail debtors have found it difficult during the COVID-19 pandemic to comply with Bankruptcy Code Section 365(d)(3)’s requirement that a debtor timely perform post-petition lease obligations while it decides whether to assume or reject a lease. However, given the pandemic’s lasting impact, and related governmental orders that have affected operations, revenues, and the ability to pay rent, retail debtors have considered legal strategies for obtaining, over the objections of landlords, extensions of the initial 60-day rent suspension already afforded by Section 365(d)(3). While a few retail debtors have been successful, one was not in In re CEC Entertainment.”

To read the full article written by colleagues Patrick J. PotterPatrick E. FitzmauriceBrian L. Beckerman, and Kwame O. Akuffo click here.

Source: Journal of Bankruptcy Law

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