Benderson Development Company, DDR, Excel Trust and Regency Centers (collectively, “Landlords”) filed with the U.S. Bankruptcy Court an objection to Golfsmith International Holdings’ sale of substantially all of the Debtors’ assets and proposed cure amounts.
The objection asserts, “As a result of the October 19 auction, the Debtors may seek to assign certain leases between the Debtors and the Landlords to Dick’s Sporting Goods or an affiliate, which include those leases to this Objection.…As part of the Debtors’ efforts to assign their interests in the Leases (the ‘Proposed Assignments’), the Debtors must ensure that their landlords receive proper treatment under the Bankruptcy Code regarding payment in full of all amounts necessary to cure all defaults under the Leases.”
The objection continues, “Pursuant to the Leases, the Debtors are obligated to pay regular installments of fixed monthly rent, percentage rent, and/or gross rent, as well as a share of common area maintenance costs, real estate taxes, and insurance. In addition, prior to pro rata assumption and assignment of the Leases, the Debtors are required by section 365(b)(1) of the Bankruptcy Code to cure all outstanding defaults under the Leases and compensate the Landlords for any actual pecuniary loss, including the payment of related attorneys’ fees.”
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