In re Auto Showcase of Laurel LLC
Sep
12
2011
Ruling
Lease rejected but tenant had right to occupy premises due to debtor lessor's bad faith material breach.
Procedural posture
Plaintiff Chapter 11 debtor filed a motion pursuant to 11 U.S.C.S. § 365(a) to reject its lease with a tenant so that it could sell the leasehold property to a buyer who would then lease it and provide inventory financing to an affiliate of the debtor. The debtor contended that the tenant was in material breach of the lease and had forfeited any rights to remain in possession under § 365(h). The tenant opposed the motion.
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Court
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