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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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'Huguenot LLC v. Megalith Capital Group Fund I, L.P.': A Tutorial On Contract Liability for Real Estate Purchasers
In June 2024, the First Department decided Huguenot LLC v. Megalith Capital Group Fund I, L.P., which resolved a question of liability for a group of condominium apartment buyers and in so doing, touched on a wide range of issues about how contracts can obligate purchasers of real property.
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.
CoStar Wins Injunction for Breach-of-Contract Damages In CRE Database Access Lawsuit
Latham & Watkins helped the largest U.S. commercial real estate research company prevail in a breach-of-contract dispute in District of Columbia federal court.
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.