Did the industrial park's bankruptcy void my lease?
The owner of the industrial park where my business operates declared bankruptcy. I have a five year lease agreement which expires in 2009. Did the bankruptcy automatically render my lease null and void? How do I find out if my lease is still valid?
1 Answer from Attorneys
Re: Did the industrial park's bankruptcy void my lease?
No; the filing alone by your landlord of a petition for relief under the US Bankruptcy Code did not automatically render the lease null and void.
The lease may be rejected, but it also may be affirmed. Many times leases are affirmed even where technically they might be rejected because the rental income is at least helping pay some creditor(s).
Bottom line is that there are special rules that apply under the US Bankruptcy Code (the Code is a long set of written rules that I would suggest has all the lucidity of the Internal Revenue Code), and numerous facts and circumstances to be considered. You should speak with a qualified insolvency law expert; he may want to review the lease, the bankruptcy petition, and/or speak with the debtor's counsel and bankruptcy trustee. If you'd like the name of good one my firm works with regularly, give me a call and remind me you sent this question via LawGuru.