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Do Post-Bankruptcy Petition Lease Claims Automatically Result In An Administrative Expense Claim for Unpaid Rent?

In In re Jughandle Brewing, a NJ Bankruptcy Court concluded allowance of an administrative expense claim is not automatic and also may not be the sole remedy for a debtor or trustee's failure to perform its post-petition obligations under a commercial lease.

11 minute read August 01, 2024 at 12:05 AM
By
Andrew C. Kassner and Joseph N. Argentina Jr.
Do Post-Bankruptcy Petition Lease Claims Automatically Result In An Administrative Expense Claim for Unpaid Rent?

As we reported in the May issue of The Bankruptcy Strategist, landlords often hold large claims in bankruptcy cases involving commercial real estate when the lease is rejected by the tenant debtor.

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