Striking Balance Between Ch. 11 Retail Debtors, Landlords

Law360, New York ( April 2, 2015, 10:25 AM EDT) -- Recently, the American Bankruptcy Institute Commission to Study the Reform of Chapter 11 released its much-anticipated report. The nearly 400-page report is groundwork for Congress to enact legislation on bankruptcy reform. It is comprehensive and provides meaningful background, debate and compromise. A prime example is the commission's proposed rebalance of the relationship between Chapter 11 debtors (namely, Chapter 11 retailers) and commercial landlords. Some recommendations are more favorable to Chapter 11 debtors, while others favor commercial landlords. Other suggestions provide more certainty and uniformity on issues that produced divergent judicial opinions and treatment. The commission's proposals to reform the treatment of commercial real property leases in Chapter 11 include:...

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