Bankruptcies in the real estate and environment industry play a role on several fronts, but are most common among tenants of commercial real estate properties such as offices and retail properties. BG.legal's bankruptcy and real estate restructuring specialists have years of experience handling bankruptcies and know exactly how to guard against your tenant's bankruptcy.
Tenant bankruptcy
It can be particularly unpleasant to be faced with your tenant's declaration of bankruptcy. You were counting on years of occupation of your premises, but that suddenly comes to an end. The trustee may terminate the lease and only needs to give three months' notice. The rent owed will not be paid immediately, but can only be reported as an estate debt.
Possibilities in case of bankruptcy
Still, there are ways to guard against a tenant's bankruptcy. In recent years, the Supreme Court has clarified the rules regarding surety, compensation, delivery, etc. in several judgments. To have options when a tenant is declared bankrupt, it is important that these rules are followed correctly and completely. That way, you will have minimal disadvantage from the unpleasant situation.
Influence of the economy
In addition, the real estate industry traditionally faces the impact of the economic situation. During economic boom times, trees grow to the sky. Banks want to finance everything, prices are rising fast and there are no vacancies. In the event of a crisis, however, the real estate industry can also be hard hit. Real estate entrepreneurs then have to pull out all the stops to survive. The specialists at BG.legal, with five decades of experience in bankruptcy and restructuring in real estate, can assist you in this regard. For example, we can help you in a discussion with the bank, which wants to move your company to Special Management due to real estate revaluation. We also have extensive experience in establishing collateral, such as mortgage and pledge rights, so that you obtain maximum security for outstanding claims.
WHOA
The Homologation Private Arrangement Act offers various possibilities to achieve debt restructuring with customization. These opportunities are available to landlords, but of course also to tenants. This law includes possibilities to change the content of a current lease, under strict conditions. Also, debts that have arisen can be settled by means of a compulsory settlement, resulting in final discharge. These are complex processes, which - if properly prepared - offer very interesting options for a healthy(er) company.
Need advice?
Do you want to make sure you have your affairs in order in the event of a tenant's bankruptcy? Or do you need advice on another subject related to bankruptcy and restructuring in real estate? Then contact the specialists of BG.legal. We will be happy to help you further.
