On June 9, 2008, the Debtors filed voluntary petitions for bankruptcy relief under the Bankruptcy Code. Relieving a landlord under § 365(d)(3) of burdensome administrative procedures, however, does not foreclose that landlord's ability to use the more burdensome procedures to recover in situations outside the scope of § 365(d)(3). By accepting the July 1, 2008, payment from Goody's, the Landlords did not give up any other rights under the Bankruptcy Code, including those accorded by § 503(b)(1). 98-882 (1984), 98th Cong., 2d Sess., reprinted in 1984 U.
“Stub rent” here is the amount due a landlord for the period of occupancy and use between the petition date and the first post-petition rent payment. § 365(d)(3), first addressed in Centerpoint Properties v. (In re Montgomery Ward Holding Corp.), 268 F.3d 205 (3d Cir.2001). Because the District Court sat as an appellate court to review the Bankruptcy Court, we review the Bankruptcy Court's legal determinations de novo, its factual findings for clear error, and its exercises of discretion for abuse thereof. We answer “no” to the first question and “yes” to the second. Section 365(d)(3) does not preempt § 503(b)(1)Section 365(d)(3) of the Bankruptcy Code imposes a special duty with respect to unexpired leases of nonresidential real property: The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. In contrast, when the contract has been fully performed prior to the petition date, it is no longer executory and thus not entitled to payment priority as an administrative expense. Del.2003) (“It is beyond dispute that all of the Debtors' landlords whose properties are occupied and used post-petition have valid administrative claims.” (emphasis added)); In re HQ Global Holdings, Inc., 282 B.
I think that the biggest issue for Gordman's is simply the markets in which their stores are concentrated.
For the most part, their stores are located in Midwestern markets which have seen slower economic growth (with factories closings, jobs often stagnant, etc.).
§ 365(d)(3), requires a debtor to timely perform all post petition obligations under a lease until that lease is assumed or rejected.
Stub rent is the term commonly used to describe the rent for the period of time from the date of filing of the petition through the first date a payment is contractually under the lease.
Each provided that rent would be paid in advance on the first day of every month during the term of the lease. § 158(a)(1) over the appeal from the Bankruptcy Court, which had jurisdiction under 28 U. Goody's is not required under § 365(d)(3) to make good on the June 1, 2008, pre-petition obligation, but Montgomery Ward did not address post-petition obligations under § 503(b)(1) of a debtor arising from actual occupancy independent of the lease. Section 503(b)(1) is specifically mentioned in § 365(d)(3). In this context, § 365(d)(3) is best understood as an exception to the general procedures of § 503(b)(1) that ordinarily apply. Section 365(d)(3) operates to dispense with these requirements for post-petition obligations under an unexpired lease of nonresidential real property, meaning it functions “without prevention or obstruction from or by” § 503(b)(1). We thus conclude that the Landlords may assert a § 503(b)(1) claim for “stub rent.”B. Although it addressed an expired lease, Zagata supports that the Debtors' retaining possession of the premises, thereby inducing post-petition services from the Landlords, is sufficient under the O'Brien and Mammoth Mart inquiries to be a transaction justifying administrative priority.