Nikki Donofrio

December 13, 2024 | The Legal Intelligencer

One of the most significant calls on cash involves post-petition rent obligations due on leased facilities. Under Section 365(d)(3) of the Bankruptcy Code, post-petition obligations with respect to leased “nonresidential real property” must be timely paid. While the code draws a distinction between residential and nonresidential real property, there is no explicit definition of “nonresidential,” thus creating difficult issues in certain health care cases.

By Francis J. Lawall and Nikki Donofrio

7 minute read