A tenant’s bankruptcy substantially changes a landlord’s position, and the statutory framework is specific.

Automatic stay. Eviction proceedings are stayed on filing, with a limited exception where the lease had already been terminated pre-petition under applicable law — a determination that depends on state law and on whether the termination was complete.

Assumption or rejection. The debtor must assume or reject a non-residential real property lease within a statutory period after the order for relief, extendable for cause and, beyond a defined outer limit, only with the landlord’s consent. Failure results in deemed rejection and surrender.

Cure on assumption. All defaults must be cured, or adequate assurance of prompt cure provided, with compensation for pecuniary loss and adequate assurance of future performance. Non-monetary defaults that cannot be cured are excused in defined circumstances.

Assignment. An assumed lease may be assigned notwithstanding anti-assignment provisions, on adequate assurance of future performance by the assignee. In shopping center leases, adequate assurance includes preservation of tenant mix and compliance with radius, use and exclusivity provisions.

Post-petition rent. Must be paid timely from the petition date pending assumption or rejection.

Rejection damages are capped by formula at a portion of the remaining term’s rent, which is usually far less than the actual loss.