Recently in the Abengoa SA bankruptcy proceeding (click here to review prior post), the United States Bankruptcy Court for the District of Delaware entered an order permitting Debtors to reject certain nonresidential real property leases (the "Rejection Order"). Click here for a copy of the Rejection Order.
Through the order, the Debtors have received authorization from the Bankruptcy Court to reject various leases listed on Exhibit 1 to the Rejection Order. Commercial landlords need to be on alert and pay close attention to this bankruptcy proceeding to ensure that their rights are protected in connection with the Debtors' rejection of their leases, including being prepared to file a rejection damages claim.
Below is a link to a previous post titled " Ten Things Every Commercial Landlord Should Know About a Tenant in Bankruptcy." This link provides a brief summary of some of the issues landlords should consider when a commercial tenant files for bankruptcy.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.