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Pressing Issues for Landlords and Tenants In the Event of a WeWork Bankruptcy
WeWork Inc. alarmed commercial real estate landlords, lenders and investors when it released its Form 10-Q for the second financial quarter of 2023 and disclosed concerns about the financial viability of the business. While the 10-Q cites various methods by which WeWork aims to improve liquidity and profitability, the company acknowledges that any efforts are not guaranteed to succeed, forcing it to consider various "strategic alternatives," including obtaining relief under the U.S. Bankruptcy Code.
This article discusses in substance the most pressing issues for both landlords and tenants in the event of a WeWork bankruptcy filing under the U.S. Bankruptcy Code.
Bankrupt Tenant Has Power to 'Reject' Unprofitable Leases and Assign Valuable Leases
Section 365 of the Bankruptcy Code provides a bankrupt tenant with one of the most powerful tools in the code — the power to keep (assume), assign or breach (reject) executory contracts and unexpired leases. The bankruptcy court defers to the debtor's business judgment as to the determination of which leases to assume, assign or reject, which means a debtor faces a relatively low burden of proving that its decision was made in the best interest of the bankruptcy estate.
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Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?