COVID Shutdown Orders vs. Statutory Rent Obligations

Even though payment of post-petition rent under a nonresidential lease (prior to rejection) has historically been an absolute requirement, bankruptcy courts, as courts of equity, have the ability during these extraordinary times to take a more flexible approach. This clearly is an evolving trend that should continue for at least the duration of the pandemic and perhaps beyond, as bankruptcy judges and practitioners seek out creative and unique responses to difficult issues.

8 minute readOctober 01, 2020 at 12:03 AM
By
Brett S. Theisen
Mark B. Conlan
COVID Shutdown Orders vs. Statutory Rent Obligations

Beginning in late March with In re Modell's Sporting Goods, Inc., No. 20-14179 (Bankr.

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