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

American Bankruptcy Institute Journal

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.