The recent Chapter 11 bankruptcy of Trak Auto Corporation (“Trak Auto”), the retail auto parts chain, has yielded a reported decision of the U.S. Fourth Circuit Court of Appeals that offers some insights for landlords on how “use clauses” in leases will be put under the bankruptcy microscope.
'Use Clauses' and the Bankruptcy Code: A Cautionary Tale
The recent Chapter 11 bankruptcy of Trak Auto Corporation ("Trak Auto"), the retail auto parts chain, has yielded a reported decision of the U.S. Fourth Circuit Court of Appeals that offers some insights for landlords on how "use clauses" in leases will be put under the bankruptcy microscope. <i>In re Trak Auto Corporation</i>, 42 B.R. 255 (4th Cir. 2004).
By
James A. Vidmar, JR.This premium content is locked for LawJournalNewsletters subscribers only
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