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This Land Isn't Your Land
Commercial Law World
January 16, 2012
Equipment and real estate lessors -- and commercial real estate tenants -- can get caught in a difficult ownership gray area in bankruptcy cases. Find out how to protect (and keep) property.
In these harsh economic times, bankrupt companies are desperate to raise money however and whenever they can.
Selling assets is one way to do this, but sometimes the "losers" in this adventure are the creditors -- namely, equipment or real estate lessors or commercial real estate tenants. Lessors sometimes have to watch as their leased property -- property they thought they owned outright -- is sold out from under them.
Tenants under commercial real estate lessees, meanwhile can learn the hard way that a debtor-landlord may be able to sell their leased premises and place the tenants at risk of being kicked out onto the street.