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I filed chapter 11 yesterday. I have five leases with simon

 
grantlawpc's Avatar
  • Answered by:grantlawpc
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I filed chapter 11 yesterday. I have five lease's with simon properties. in three lease's my term is one year i have been in my spaces for over a year. Simon gives me a new lease every year. My question is there is a 30 kick out on the land lords end only meaning simon can give me 30 notice to vacate. Since i filed chapter 11 yesterday can simon vacate me.?

 

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State/Country relating to question: Massachusetts

Submitted: 281 days ago.
Category: Bankruptcy Law
Value: $25
Status: CLOSED

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Expert:  grantlawpc replied281 days ago.

Of course I must defer to your Chapter 11 attorney.

However, if what you are describing means that the leases are more in the nature of month-to-month leases, then I would be concerned. You have the right to assume all executory leases existing on the petition date. However, you can't modify it without landlord consent. Even if you assume the lease as it is written, the landlord can terminate it thereafter. So what have you gained?

If however, the 30 day provision you discuss is only available to the landlord if you are in default, then as long as you cure the lease when you assume it, then they can't kick you out unless you default in the future.

The mere fact that you are in bankruptcy cannot be a default in an of itself, regardless of what the lease says. These provisions are ipso facto clauses and are not enforceable in bankruptcy.

Let me know if I missed any part of your question!
R

Expert TypeAttorney
Category: Bankruptcy Law
Pos. Feedback: 95.2 %
Accepts: 23
Answered: 8/14/2012

Experience: United States Bankruptcy Code: Chapter 11 Business Attorney; Restructuring and Recoveries

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Customer replied281 days ago.

No the term of the lease is a 12 month lease with a 30 kick only by land lord not us. on the face of the lease is a term lets say from sept 1 2012 to sept 1 2013..

 
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