Precision Industries, Part 2: How Lessees and Leasehold Mortgagees Can Protect Themselves
Probate and Property, March/April 2004, Volume 18, Number 2
By John C. Murray
John C. Murray practices law with First American Title Insurance Company in Chicago, Illinois.
The Seventh Circuit’s recent decision in Precision Industries, Inc. v. Qualitech SBQ, LLC, 327 F.3d 537 (7th Cir. 2003), highlights the risks that lessees (and leasehold mortgagees) face when a debtor-lessor files for bankruptcy. The decision is analyzed in Precision Industries, Part 1: Debtor-Lessor’s Property May Be Sold “Free and Clear” of Unexpired Lease, at page 10 in this issue of Probate & Property. This article offers strategies and drafting tips to minimize the risks identified by the Precision Industries case.