June 24, 2016
The Law360 article, "Sports Authority Landlords Want Lenders To Cover Some Rent,” mentions partner Robert L. LeHane, special counsel Gilbert R. Saydah Jr. and associate Scott L. Fleischer as counsel to the landlords that lease retail space to Sports Authority. The article covers a motion filed before the Delaware bankruptcy court on behalf of about a dozen landlords to start surcharging the retailer’s lenders to recover unpaid rent.
Sports Authority entered Chapter 11 protection in March and held going-out-of-business sales at all its stores, putting unexpired leases up for auction in an attempt to generate more recoveries for creditors. The leases aren’t attracting much interest from the market and landlords fear “the prospect of zero funds being available to pay the stub rent for the additional stores, the landlords had no choice but to file this supplemental motion requesting adequate protection and seeking immediate payment of the stub rent for the additional stores before all of the funds in the debtors’ estates are surrendered to the secured lenders."
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