Page 8 - NBIZ June2021

Commercial Landlord’s

Lessons Learned

from COVID

By Angeline Vachris Kell
and Elias Yazbeck

ankruptcy cases during COVID-19 taught Commercial
Landlords three valuable lessons. Firstly, the
debtor-tenant may request and receive a rental
deferment payment extension of 60 days. Secondly,
communications with the tenant, as soon as problems
arise, may prevent greater defaults. Thirdly, obtain
Bletters of credit before a lease and/or an amendment.

60-day Rental Payment Extensions
The shutdowns imposed due to COVID-19 caused many retail-
ers to file bankruptcy, which greatly impacted landlords. Signif-
icant cases imparted salient lessons. Chuck E. Cheese became
one of the first COVID-19 victims. In that case, the Court allowed
an extension of rental payments to the landlords under Section
365(d)(3) of the Bankruptcy Code but limited it to an extension of

8 NBIZ ■ June 2021