Phillips Edison & Company, Ramco-Gershenson Properties filed with the U.S. Bankruptcy Court an objection to rue21’s motion for entry of final order authorizing the Debtors to assume the consulting agreement and approving procedures for store closing sales.
The objection asserts, “There should be a finite period of time within which Debtors may conduct the GOB Sales. The Motion sets for an approximate end-date. This date should be firm. The GOB Sale should be conducted within the normal operating hours of the mall or shopping center. The GOB Sale should comply with the mall or shopping center regulations or guidelines concerning security, maintenance, trash removal or any other pertinent guidelines.”
Separately, multiple parties – including Phillips Edison & Company, Ramco-Gershenson Properties; ARC NPHUBOH001, Aronov Realty Management, Brixmor Property Group, Centennial Real Estate Company – filed with the U.S. Bankruptcy Court separate objections to rue21’s emergency financing motion. Phillips Edison & Company, Ramco-Gershenson Properties asserts, “Debtors’ continuing use and occupancy of the Premises is critical to Debtors’ ongoing operations including store closing sales. The use and occupancy of the Premises provides an actual, necessary, and ongoing benefit to Debtors, and the Court should require Debtors to pay Landlords Stub Rent. Authorizing use of the Premises for the benefit of the DIP and Pre-Petition Secured Lenders without payment of Stub Rent is not supported by applicable law….Landlords should not be forced to bear the risk of administrative insolvency, while all other parties in interest benefit from the ongoing sales process.”
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