Page 9 - NBIZ Magazine 2022 February

Chuck E. Cheese “SOME OF THE MOST RECENT DYNAMIC CASES
Chuck E. Cheese became one of AND DECISIONS WERE FILED IN THE
the first COVID-19 victims. On June
25, 2020, it filed for bankruptcy BANKRUPTCY COURTS IN HOUSTON, TEXAS
protection under Chapter 11. It such as the J.C. Penney Company, Inc., Chuck
emerged on January 6, 2021.
E. Cheese, CBL & Associates Properties, Inc., the
Significance Men’s Wearhouse, and Belk.”
The debtor attempted to obtain
a rental payment extension past
60 days using the force majeure
provisions in the leases and
other sections of the Bankruptcy
Code. Judge Isgur found that the
Bankruptcy Code did not allow the
Court to extend beyond the 60 days.
In that case, the Court allowed an
extension of rental payments to the EMPLOYER
landlords under Section 365(d)(3) BENEFIT SERVICES
of the Bankruptcy Code but limited
1
it to an extension of sixty days. In
re CEC Entm’t, Inc., 625 B.R. 344,
352–53 (Bankr. S.D. Tex. 2020).

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J.C. Penney Company, Inc.
J.C. Penney filed for bankruptcy
protection on May 15, 2021. Tens
of thousands of jobs balanced upon
the precipice. It emerged from
bankruptcy triumphant.
BENEFITS
CLAIMS
HUMAN
Significance MANAGEMENT RESOURCES EDUCATION AND
The debtor obtained a large When a claim is CONSULTING CONSULTING
rental extension and saved 60,000 made, we assist in the Develop policies and Cra a competitive

jobs. In the summer of 2020, process, from the first procedures, address employee benefits plan
recruiting strategies,
to recruit and retain
J.C. Penney Company, Inc., the filing of the claim to its develop job descriptions. valuable employees.
resolution.
debtor, also requested a rental
payment extension arising within
sixty days of the petition date.
2
Effectively, the company was able PUTTING ALL THE HEALTHCARE
to request an additional sixty days BENEFIT PIECES TOGETHER
to pay rent. Nevertheless, after OFFICE ONLINE
the first extension, the Court did 713-647-9700 www.corebenefits.net
not allow additional extensions on
rental payment performance.
NBIZ ■ February 2022 9