Volume 1, Number 1
2003
Winter Leadership Conference Wrap-up
The Real Estate and Asset Sales Committees conducted a joint presentation
and panel discussion of the decision of the Seventh Circuit U.S. Court
of Appeals in In re Qualitech Steel SBQ LLC, 327 F.3d 537 (2003),
holding that a sale "free and clear of liens, claims, encumbrances
and interests" extinguished a lessee's interest in the property.
The bankruptcy, real property and due process aspects of that decision
were explored by a panel including Prof. Robert M. Zinman, attorney Thomas
Wolford and committee Co-chair Alec Ostrow, and was moderated by John
Collen.
To
read full outline, click here
The Landlord’s
Post-filing Pre-rejection Limbo:
The Treatment of Option Period Charges Under 11 U.S.C. §365(d)(3)
Written by Tracy L. Treger*
Copyright, 2004, by Tracy L. Treger
One of the benefits debtors enjoy under the Bankruptcy Code (the “Code”)
is the ability to reject burdensome contracts and leases. During the post-petition,
pre-rejection “option period,” §365(d)(3) of the Code
obligates the debtor to “timely perform” its obligations under
such leases:
The trustee shall timely perform all the obligations of the
debtor . . . arising from and after the order for relief under any unexpired
lease of nonresidential real property, until such lease is assumed or
rejected, notwithstanding section 503(b)(1) of this title.
While the language of the statute appears straightforward, courts have reached
inconsistent conclusions about how much must be paid to landlords during
the option period and when such payments must be made.
To
read full article, click here
2004 Annual Spring Meeting Preview
The committee will present a panel discussion on the topic of real estate
valuation at the 2004 Annual Spring Meeting, April 15-18 in Washington,
D.C. Speakers will consist of real estate professionals discussing appraisal
methodology and proving real estate values. A grasp of valuation techniques
and issues is vital for anyone dealing with real estate in such bankruptcy
contexts as automatic stay litigation, adequate protection, claims allowance
and determination of secured status, §1111(b) elections and claim treatment
under a plan. This CLE presentation will follow the plenary session of business
valuation issues, and will complement that session by focusing on advanced
analysis as it pertains to real estate. Information on the full Annual Spring
Meeting program is available online.