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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Transactions

Date & Time
  • event Date

    Thursday, November 30, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will provide guidance to real estate counsel on how to best advise their clients, either landlord or tenant, on what to do if a commercial landlord must file for bankruptcy. The panel will provide an overview of the bankruptcy process as it relates to commercial real estate and discuss what, if any, up-front drafting considerations for commercial leases may best prepare the parties for this possible outcome. The panel will address ongoing landlord and tenant obligations and tenant rights, as well as best practices for navigating a landlord's bankruptcy.

Faculty

A.J. Webb
Partner
Frost Brown Todd

Mr. Webb counsels companies facing varying degrees of financial uncertainty and distress, working to proactively identify and assess insolvency issues. He represents parties (secured/unsecured creditors, debtors, committees, purchasers, and borrowers) in all phases of bankruptcy and insolvency proceedings, with an emphasis on selling or acquiring distressed assets and assisting parties in restructurings or out-of-court workouts. Additionally, Mr. Webb counsels clients on general corporate and commercial matters and has also prosecuted or defended numerous avoidance actions. He has represented clients throughout the country in debtor, committee, senior secured lender, distressed acquisition, and retail/landlord engagements.

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Harold D. Israel
Partner
Levenfeld Pearlstein, LLC

Mr. Israel represents debtors, asset purchasers, secured lenders, creditors and official creditor committees in workouts (in- and out-of-court) and reorganizations throughout the country. Additionally, he represents lenders and equity sponsors in asset-based lending, foreclosure, and debtor-in-possession financing transactions. Mr. Israel also assists not-for-profit organizations in drafting corporate governance documents. He is a past Chair of the Chicago Bar Association’s Bankruptcy and Reorganization Committee and is a past president of the Chicago/Midwest Chapter of the Turnaround Management Association.

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Description

With the increase in distressed commercial real estate, bankruptcy is more common--not only for tenants but also for landlords. The landlord has various options under the Bankruptcy Code. First and foremost, the landlord must decide on what type of bankruptcy to file which then determines, among other things, what they may do with their property and what continuing obligations they may have to their tenants.

The landlord's decision will greatly impact their tenants. A tenant may or may not have continuing obligations under their lease and may also have certain rights under the Bankruptcy Code. However, courts are divided as to whether a landlord's sale of property extinguishes a tenant's rights under Bankruptcy Code Sections 363 and 365.

Real estate counsel should generally understand the bankruptcy process as it pertains to landlords and tenants and how it may affect their clients so as to best advise their clients in the event a landlord files for bankruptcy.

Listen as our expert panel provides real estate counsel with an overview of the bankruptcy process as it relates to commercial real estate and discusses what, if any, up-front drafting considerations for commercial leases may best prepare the parties for this possible outcome. The panel will address landlord options in relation to the property and any ongoing obligations they may have to their tenants. The panel will also discuss tenant rights, what tenants may do to protect themselves, and what they can expect if their landlord declares bankruptcy.

Outline

  1. Introduction to the bankruptcy process
    1. Automatic stay
    2. Lease assumption
    3. Lease rejection
    4. Assignments, sales, and auctions
    5. Security deposits
    6. Other considerations
  2. Landlord options, obligations, and consequences for tenants
    1. Chapter 7
    2. Chapter 11
    3. Chapter 13
  3. Tenant rights and obligations
    1. Tenant rights under Bankruptcy Code Section 363 vs. Section 365
    2. Ongoing lease obligations
    3. New landlord
    4. Steps tenants should take to protect themselves
  4. Lease considerations
    1. Up-front drafting considerations to best prepare for a bankruptcy
    2. Rights under the lease in case of a landlord's bankruptcy
  5. Best practices for navigating a landlord's bankruptcy

Benefits

The panel will review these and other important issues:

  • What protections does the Bankruptcy Code afford landlords and tenants if a landlord files for bankruptcy?
  • What ongoing obligations does a landlord have to their tenants after the landlord files for bankruptcy?
  • What are the tenants' rights and obligations once their landlord files for bankruptcy?
  • How can a tenant best protect themselves in case a landlord files for bankruptcy?