Landlords Given Reasons to Sweat: “Teeny Tiny” Non-Monetary Defaults and Assumption Requirements
American Bankruptcy Institute Journal
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In an article in the ABI Journal, Bob LeHane and Philip Weintraub discuss an October 2021 Central District of California decision upholding a bankruptcy court interpretation of section 365(b) that requires a debtor-tenant to only cure “material” defaults when assuming a lease of non-residential real property. Is this inclusion of a California state law based “materiality” requirement into the Bankruptcy Code a notable outlier, or it will open the door for future erosion of 365(b) protections for landlords?
Read the full article here.