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Steven M. Herman, a partner at Cadwalader, Wickersham & Taft, writes that a debtor has the express right to assume or reject an unexpired lease. A master lease structure is intended to limit such rights in bankruptcy to an assumption or rejection of the master lease in whole and prevent the debtor from picking and choosing which of the many properties leased pursuant to the master lease it wishes to assume or reject. But in a recent case, the U.S. Bankruptcy Court for the District of Delaware was quick to note that demonstrating a contract or lease as a single document does not mean that it is not indivisible.
February 04, 2009 at 12:00 AM
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