Implications of Federal Appellate Court Decision Allowing Bankrupt Company to Sell Real Estate Free and Clear of Tenant's Lease
The 7th Circuit has issued an opinion in which it decided that a "free and clear" sale of property under Section 363(f) of the Bankruptcy Code extinguishes a lessee's right to remain a tenant on the property, even if the lessee is not in default. This memorandum, by members of the Firm's Bankruptcy and Real Estate Departments, discusses the implications of the 7th Circuit's decision.