One of the most significant calls on cash in a bankruptcy involves post-petition rent obligations due on leased facilities. Under the Bankruptcy Code, post-petition obligations with respect to leased “nonresidential real property” must be timely paid. While the code draws a distinction between residential and nonresidential real property, there is no explicit definition of “nonresidential,” thus creating difficult issues in certain health care cases.
January 01, 2025Francis J. Lawall and Nikki Donofrio
