Commercial collection and creditor lawyers are going seeing a rise in landlord / tenant matters they are handling. As the credit crisis continues to move through the economy many landlords are relying on creditor attorneys to renegotiate lease agreements with commercial tenants. As consumers hold onto their cash, and credit dries up, many commercial tenants are unable to meet their lease obligations. Additionally more commercial retailers are seeking bankruptcy protection which will almost immediately impact their lease obligations.
Commercial landlords should seek the assistance of creditor attorneys who specialize in representing landlords in commercial lease negotiations and who also have experience protecting creditor’s rights in reorganization matters.
Corporate Bankruptcy Filings
On December 15th, Myrtle Beach South Carolina’s Hard Rock Park will be auctioned off in order to repay creditors. Deutsche Bank, one of the largest creditors, is owed about $18.6 million and will be paid first. Next to be paid will be the lenders who provided the park about $2 million, followed by the payment of legal fees. Finally with any money that remains from the auctioning off of assets, any remaining “liens, claims and encumbrances” will be paid off. Suppliers who are owed money for services or goods provided to Hard Rock Park should follow the December 15th auction closely and work with a qualified South Carolina creditor’s rights attorney to ensure they recover any funds owed to them should surplus funds from the auction be available.
According to Bloomberg, Delaware’s Bankruptcy Court’s website has been down for the past three days due to hardware issues. With the crash creditor and debtor attorneys with cases in Delaware had to resort to filing things the old fashion way …. on paper.
Since 2007, Delaware has been home to 60 of all Chapter 11 filings involving entities with over $250 million in assets.
Nation’s #2 Electronics Retailer In Trouble 
Richmond Virginia based Circuit City is the latest retailer to file for bankruptcy protection. The retailer will and seek to close 150 stores nationwide, renegotiate leases, lower rents, and terminate agreements while it deals with tightening credit from its vendors.
