The rapid outbreak of the novel coronavirus (COVID-19) has caused widespread business disruptions. Bankruptcy cases will likely be on the rise as a result, particularly in hard-hit, consumer-facing industries like retail, which has already seen the recent bankruptcy filings of Payless Shoes, Destination Maternity and Modell’s Sporting Goods. Against this backdrop, there is no better time than the present for a refresher on the special protections afforded commercial landlords under the Bankruptcy Code, and the counterbalancing restrictions imposed on their rights as creditors.
Davis & Gilbert partner Joseph Cioffi and counsel Massimo Giugliano address questions frequently asked by landlords when a commercial tenant files for bankruptcy. These responses should aid any landlord facing a commercial tenant bankruptcy for the first time and serve as a reminder of the protections and pitfalls that exist for even the most bankruptcy-savvy landlords