Corona, Cheesecake & Testing The Mirage of Lease-Debt Equivalence by @LAForeverHallhttps://lizardbrain.substack.com/p/corona-cheesecake-and-testing-the?utm_campaign=post&utm_medium=web&utm_source=twitter …
Nuanced IMO. Don't forget that leases can often be "assigned" in bankruptcy if they're good, allowing the estate to generate cash by "selling" below market leases if it's so inclined. Landlord gets its rent but with new tenant it didn't necessarily want.https://www.pbwt.com/bankruptcy-update-blog/the-assignment-of-leases-in-bankruptcy-free-of-prohibitions-restrictions-and-conditions …
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In the case of assignment, the tenant can extract embedded value & prevent landlord from capturing lease spread. In the case of rejection, the tenant has a sort of embedded put option for rents that aren't economic or otherwise above market. Or at least, that's my perception.
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Makes sense...but theoretically if I own CAKE’s best assets, and CAKE intends to survive as a biz, they would want to operate their best assets. That would put me in a good position when it came to rent relief/lease restructuring
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