Bankruptcy Court Rules Bankruptcy Code Does Not Permit Extended Rent Holiday for Retail Debtors

A recent Chuck E. Cheese decision denies the debtor’s/tenant’s request to defer paying rent after the 60-day “rent holiday.” The Bankruptcy Court applied the “plain language” rule to hold that section 365(d)(3)’s rent holiday cannot be extended. After that initial 60-day period expires, the debtor is required to pay post-petition rent....
By: Pillsbury Winthrop Shaw Pittman LLP

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