Page 17 - NBIZ Magazine December 2020

Landlord’s

Creative

Solutions

By Angeline Vachris Kell and Brendetta Anthony Scott

s 2020 comes to an end, com- emergency relief of sixty-day rental
mercial landlords have been deferral under Section 365(d)(3) of the
forced to withstand systemic Bankruptcy Code. In light of COVID-
A bankruptcies and/or closures 19, Bankruptcy Courts are granting
of retail giants such as J.C. Penney, the sixty-day deferral requests. Some
Lord & Taylor, Neiman Marcus, Stages, Courts allow greater rent deferrals
Steinmart, Brooks Brothers, Sur La than the time constraints imposed
Table, Studio Movie Grill, and Chucky under Section 365(d)(3). Outside
1
E. Cheese, to name a few. Historically, bankruptcy, landlords could defer
these tenants were anchors, generat- rental payments with lease amend-
ing reliable income while drawing in ments and add a personal guarantee
other valuable tenants. The survival for additional protection. Alternatively,
of these tenants depends, in part, landlords could also amend the lease
on landlords’ creative solutions to to defer rental payments and increase
assist tenants in generating consis- payments in the future.
tent income despite ordinances and In all likelihood, constraints forced
COVID-19. landlords to defer rental payments to
the end of the lease, in the Spring or
Landlords may defer rental payments Summer of 2020. Understandably,
In recent bankruptcy cases across landlords hesitate to grant any more
the country, tenants are requesting deferrals, let alone, forgive rental

NBIZ ■ December 2020 17