A commercial lease in Chapter 11: three calendars to track

Identify the kind of lease first

A shop, warehouse, and leased machine do not necessarily follow the same bankruptcy timetable. Section 365 contains distinct rules for nonresidential real property, residential property, and personal property. This guide concerns an unexpired nonresidential real-property lease where the debtor is the tenant. Confirm that classification before building a calendar.

The lease file should include amendments, renewal options, assignments, guarantees, security deposits, and notices of default or termination. Whether a lease was terminated before the case may materially affect the analysis. A landlord's description of a lease as terminated is not a substitute for examining the applicable law and facts.

Track ongoing obligations and the decision deadline

Section 365(d)(3) addresses timely performance of post-order-for-relief obligations until assumption or rejection, with a limited extension provision. Section 365(d)(4) separately governs when a covered nonresidential lease must be assumed or rejected. The ordinary statutory period is 120 days after the order for relief or plan confirmation, whichever occurs first; extensions have specific conditions.

Do not use that general explanation as a case calendar. Counsel should confirm the operative dates, any timely extension request, the court's order, and any necessary landlord consent. A payment discussion does not automatically extend the assumption deadline.

Keep the cure calculation separate

Assumption can require cure and assurance of future performance. Build a reconciliation that distinguishes prepetition arrears, postpetition charges, disputed operating expenses, credits, and deposits. An illustrative landlord and tenant might agree on base rent while disagreeing about a year-end maintenance reconciliation. Combining those categories hides the issue that needs resolution.

A practical lease calendar

• Record the petition and order-for-relief dates and identify the applicable statutory clock.
• Track rent and other ongoing obligations independently of the assumption deadline.
• Save every extension order and written consent.
• Reconcile the proposed cure figure with supporting invoices and the lease.