Landlords Given Reasons to Sweat: ​“Teeny Tiny” Non-Monetary Defaults and Assumption Requirements

In an article in the ABI Journal, Bob LeHane and Philip Weintraub discuss an October 2021 Central District of California decision upholding a bankruptcy court interpretation of section 365(b) that requires a debtor-tenant to only cure ​“material” defaults when assuming a lease of non-residential real property. Is this inclusion of a California state law based ​“materiality” requirement into the Bankruptcy Code a notable outlier, or it will open the door for future erosion of 365(b) protections for landlords?
Read the full article here.