Duty of Timely Performance : Leases and Contracts

Duty of Timely Performance

Sixth Circuit Rejects Proration Of Postpetition Rent
Christopher J. Marcus of Weil, Gotshal & Manges LLP

This update summarizes a Sixth Circuit decision that held a landlord is not obligated to prorate post petition rent for a debtor after the lease is rejected and when the rent is payable in advance of the first day of the month.
Bankrupt Debtor Must Pay Entire Month's Rent Even If Lease Is Rejected A Few Days Into The Month
Charles R. Sterbach of Gallagher & Kennedy, P.A.

In the June/July, 1998 issue of Lenders' Alert, (Vol. 6, No. 3), the case of In re Koenig Sporting Goods, Inc. fro.