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Anti-Forfeiture Statute Saves a Debtor's Exercise of Option to Renew Lease

In a recent decision, Bankruptcy Judge Christopher S. Sontchi addressed the question of whether a Chapter 11 debtor, the tenant under a commercial lease, could exercise an option to renew the lease during the bankruptcy proceedings, even though the debtor was in default under the lease and the lease specified that it could not be renewed if defaults existed at the time the option was exercised.

7 minute read May 01, 2018 at 12:05 AM
By
Barry M. Klayman and Mark E. Felger
Anti-Forfeiture Statute Saves a Debtor's Exercise of Option to Renew Lease

In a recent decision, Bankruptcy Judge Christopher S. Sontchi addressed the question of whether a Chapter 11 debtor, the tenant under a commercial lease, could exercise an option to renew the lease during the bankruptcy proceedings, even though the debtor was in default under the lease and the lease specified that it could not be renewed if defaults existed at the time the option was exercised.

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