In this LexisNexis Emerging Issues Analysis, Deborah J. Piazza examines In re R. Ring Enterprises, Inc., 2009 Bankr. LEXIS 685 (Bankr. N.D. Cal. Feb. 18, 2009), in which the issue was whether a debtor could indefinitely extend the time to assume or reject its nonresidential real property leases under 11 U.S.C. § 365(d)(4) if it filed, but did not confirm, a plan which included the assumption of such leases.
The author writes: Since the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"), there has been extensive analysis and discussion regarding a debtor's time to assume or reject nonresidential real property leases under section 365(d)(4) of title 11 (the "Bankruptcy Code"). Prior to BAPCPA, a debtor would routinely request, and often be granted, several extensions of time to assume or reject its unexpired nonresidential real property leases. This was typical of a chapter 11 debtor, especially in large retail cases where a debtor's leasehold interests were often the most valuable asset in the bankruptcy estate. BAPCPA has changed that strategy for debtors.
