Post Petition Agreement

The debtors refused the lease effective November 21, 2008. Inland submitted two supporting documents relating to the amounts earned under the lease and construction contract. In accordance with Section 365 D), the Land applied for administrative priority for the $1.8 million paid to Fisher under the lease and construction compensation provisions. Under the Bankruptcy Act, a Chapter 11 trustee or debtor (“DIP”) is required to fulfill the obligations arising from the petition arising from an outstanding commercial real estate lease until he or she decides to take over or refuse the lease. In particular, Section 365 (d) (3) requires the agent to “fulfill all debtor obligations in a timely manner with limited exceptions.” (after and after the discharge decision” in the context of an outstanding lease on non-residential real estate for which the debtor is the taker. Section 365 (d) (3) has also had the effect of controversy in cases where the timing of an insolvency application creates a “rent stub”. Stubmie is the rent due for the period following the bankruptcy filing date until the next payment date of the rent. If, for example.B. a rental agreement requires the rent down payment on the first of each month and the date of the petition falls on the 10th day of the month, provided the rent has not been paid before the date of the petition, the stub rental period would be from the 10th day of the month to the end of the month. Since Section 365 (d) (3) imposes the outstanding payment of obligations “from and after the exemption application,” it could be argued that the show rent should not be paid under Section 365 (d) (3), since the payment was due before the date of the petition.

Some courts have rejected this approach and have held that section 365 (d) (3) requires a debtor to pay the stub lease on a proportionate basis as part of his obligation to “fulfill in a timely manner” his obligations arising from his outstanding leases. Other jurisdictions object to this interpretation, arguing that the rental of a salon should not be paid in accordance with Article 365 (d) (3). U.S. Bankruptcy Judge Brendan L. Shannon of the Delaware District confirmed a reorganization plan and confirmed the validity of a post-petition lock-up agreement to In re Indianapolis Downs, Case No.