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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.
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.
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.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.