Court Caps Landlord's Bankruptcy Claim Against Lease Guarantor

Given that landlord damage claims could overwhelm other creditor claims in a tenant's bankruptcy case, the Bankruptcy Code includes a provision that limits a landlord's claim, which presents challenges for landlords as creditors in bankruptcy cases.

8 minute read May 01, 2024 at 12:07 AM
By
Andrew C. Kassner and Joseph N. Argentina Jr.
Court Caps Landlord's Bankruptcy Claim Against Lease Guarantor

A big issue in real estate and retail bankruptcies, among others, involves the disposition of commercial real estate leases, given the potential magnitude of landlord damage claims under state law resulting from a tenant's default under a long-term lease.

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