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file a rejection or assumption of the       The Supreme Court            or even argue cause to allow it to
        leases. The Plan will also include     declared four factors to          file a late administrative claim and
        a deadline to file administrative                                        therefore did not allow the claim. The
        claims. Administrative claims for        determine excusable             Court may have ruled differently had
        landlords include rental payments        neglect: “the danger            the landlord shown that it did not
        owed after the bankruptcy filing.         of prejudice to the            receive notice of the administrative
           If the Plan does not include a dead-                                  deadline or “other criteria that meets
        line for administrative claims, then it   debtor, the length             the "excusable neglect” standard.”
        is almost certain that the Confirmation   of the delay and its              The past 18 months have been
        Order will include this information,     potential impact on             especially challenging for both land-
        usually in bold or capitalized letters.                                  lords and tenants due to the economic
        Prudent landlords should continue to     judicial proceedings,           impacts of COVID-19. It may be
        communicate with their attorney(s)         the reason for the            exponentially more difficult to locate
        during the bankruptcy to prevent any        delay including              a new tenant than it is to work with a
        miscommunications. It is worth noting                                    current tenant. At least, if the tenant
        administrative claims for post-petition   whether it was within          files bankruptcy, information and
        rent are not filed like ordinary proofs   the reasonable control         knowledge about choices can help
        of claim with the claims’ register.       of the movant, and             landlords protect their rights. N
        Administrative claims are filed on
        the Court’s docket as an application,    whether the movant              Angeline Vachris Kell is an Attorney
        similar to a motion. If landlords do     acted in good faith.”           at HooverSlovacek LLP. She
        not file the administrative claims as                                    received her J. D. from South Texas
        a separate document by the deadline                                      College of Law and a Bachelor of
        on the Court’s docket, the debtor or                                     Arts with a major in Spanish from
        plan administrator may object, and the                                   the University of Texas. Mrs. Kell
        Court may disallow the post-petition   good faith.” Pioneer Inv. Servs. Co. v.   is the Past President of the Hon.
        administrative rent claim.           Brunswick Assocs. Ltd. P'ship., 507   Arthur L. Moller/David B. Foltz, Jr.
                                             U.S. 380, 395, 113 S. Ct. 1489, 123 L.   American Inn of Court. Information
        The deadline passed, now what?       Ed. 2d 74 (1993).                   about Mrs. Kell is available https://
           If the deadline to file an applica-  A handful of notable bankruptcy
        tion for an administrative expense   Courts have dealt with this issue.   angeline-angie-kell/. Mrs. Kell may
        claim has passed without filing a    The Bankruptcy Court in the District   be contacted by email at  kell@
        claim, the landlords should contact   of Delaware decided this issue in
        their counsel. Under Section 503(a),   Bluestem.  In Bluestem, the foreign
        a landlord may “…tardily file such   vendor sold goods post-petition but   Stacey L. Kremling is an attorney
        request if permitted by the court    failed to file a timely application for   at Womac Law. She received her
        for cause.” 11 U.S.C. § 503(a). If a   administrative expense claim on the   J.D. from South Texas College of
        landlord has proof that he/she did not   Court’s docket. The Court found that   Law and a Bachelor of Business
        receive notice to file the administra-  the foreign vendor was unfamiliar   Administration from Southwest
        tive claim by a date certain, usually   with the United States bankruptcy   Texas State University.
        in a Confirmation Order, it may      laws and did not receive notice to
        petition the Court to allow a late-filed   file the administrative claim due to   Endnotes
        administrative claim.                postal delays during COVID-19. As   1.  See Case No. 20-33163; In re CEC
           Section 503(a) allows a landlord to   the vendor could demonstrate “cause”   Entertainment, Inc., et al; (Jointly Administered),
        show cause for filing a late adminis-  and “excusable neglect,” the Court   In the United States Bankruptcy Court for the
        trative claim. Courts generally apply   reconsidered its late-filed claim and   Southern District of Texas, Houston Division.
        the “excusable neglect” standard     granted it administrative status.   (MI); Case No. 20-32564, In re Stages Stores,
        set forth by the Supreme Court in      The Northern District of Texas    Inc. (Jointly Administered), In the United States
                                                                                 Bankruptcy Court for the Southern District
        Pioneer. The Supreme Court declared   Bankruptcy Court, in Taco Bueno,   of Texas, Houston Division. (DRJ); Case No.
        four factors to determine excusable   also considered this issue, disallow-  20-20182, In re J.C. Penny Company, Inc. (Jointly
        neglect: “the danger of prejudice to   ing the administrative claim.  The   Administered), In the United States Bankruptcy
        the debtor, the length of the delay   landlord requested post-petition rent   Court for the Southern District of Texas,
        and its potential impact on judicial   in its proof of claim filed in the claim’s   Houston Division. (DRJ)
        proceedings, the reason for the delay   registry and not as an application for   2.   In re Bluestem Brands, Inc., 70 Bankr. Ct. Dec.
                                                                                 (LRP) 145, 2021 Bankr. LEXIS 1980 (Bankr. D. Del.
        including whether it was within the   administrative expense filed on the   July 27, 2021).
        reasonable control of the movant,    Court’s docket. The Court noted that   3.   In re Taco Bueno Rests., Inc., 606 B.R. 289, 301
        and whether the movant acted in      the landlord failed to demonstrate   (Bankr. N.D. Tex. 2019).

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