Page 8 - NBIZ June2021
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Commercial Landlord’s

                        Lessons Learned

                                      from COVID

                                                   By Angeline Vachris Kell
                                                      and Elias Yazbeck

                                             ankruptcy cases during COVID-19 taught Commercial
                                             Landlords three valuable lessons. Firstly, the
                                             debtor-tenant may request and receive a rental
                                             deferment payment extension of 60 days. Secondly,
                                             communications with the tenant, as soon as problems
                                             arise, may prevent greater defaults. Thirdly, obtain
                                   Bletters of credit before a lease and/or an amendment.

                                   60-day Rental Payment Extensions
                                     The shutdowns imposed due to COVID-19 caused many retail-
                                   ers to file bankruptcy, which greatly impacted landlords. Signif-
                                   icant cases imparted salient lessons. Chuck E. Cheese became
                                   one of the first COVID-19 victims. In that case, the Court allowed
                                   an extension of rental payments to the landlords under Section
                                   365(d)(3) of the Bankruptcy Code but limited it to an extension of

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