• Termination of a Commercial Lease May be an "Avoidable Transfer” in Bankruptcy, holds Seventh Circuit
  • May 25, 2016 | Author: Christopher R. Thompson
  • Law Firm: Burr & Forman LLP - Orlando Office
  • In March 2016, the U.S. Court of Appeals for the Seventh Circuit ruled that a landlord may be liable to a debtor’s bankruptcy estate for the value of a lease the debtor terminated early, holding the termination may be an “avoidable transfer” under the Bankruptcy Code.1 The opinion in Official Comm. of Unsecured Creditors v. T.D. Invs. I, LLP (In re Great Lakes Quick Lube LP)2 reversed the Bankruptcy Court’s ruling, and in doing so perhaps expanded the definition of a “transfer” under the Bankruptcy Code.