When the Best Defense Is a Strong Defense
A Commercial Landlord’s Guide to Dealing with Financial Distress and the Bankruptcy of a Tenant
Probate and Property, November/December 2004, Volume 18, Number 6
By Trent L. Rosenthal and Lee A. Collins
Trent L. Rosenthal and Lee A. Collins are shareholders in the Houston law firm of Boyar & Miller.
Commercial landlords, property managers, and real estate lawyers are familiar with the golden rule of real estate—location, location, location. Over the years, those three words have been heard as the magical answer to any question or problem involving real estate. But the unfortunate reality is that a myriad of problems the commercial landlord and the lawyer must deal with cannot be resolved so simply. The difficulty is no more apparent than when a commercial tenant experiences financial distress and files Chapter 11 bankruptcy reorganization or Chapter 7 liquidation after it is unable to work out something with its landlord and other creditors. Commercial landlords and real estate lawyers do have strategies that can maximize the value of the outcome.