• Court Puts Leaseholds at Risk in Section 363 Sales -- Qualitech Decision Calls Tenants' Rights into Question
  • April 15, 2005 | Authors: Melanie Rovner Cohen; Faye B. Feinstein; Christopher Combest
  • Law Firm: Quarles & Brady LLP - Chicago Office
  • Although the language of the U.S. Bankruptcy Code often leaves room for argument and interpretation, there are some answers that those in the field thought they knew. For example, they knew that a tenant whose landlord was in bankruptcy could not be deprived of its possessory interest -- its leasehold -- in the landlord's real property. If a debtor-landlord rejected a lease of real property, thereby repudiating its obligations to its tenant, those in the field knew that the tenant could not be uprooted without its consent.