bankruptcy

Section 365 of the Bankruptcy Code allows debtors to “assume” unexpired leases, recommitting themselves and their counterparties to the existing lease terms, subject to approval by the Bankruptcy Court.  If there are existing defaults under the lease, section 365(b) appears to require that the debtor provide the counterparty with adequate assurance of prompt cure of defaults, compensation for losses resulting from the defaults, and adequate assurance of future performance under the lease, ensuring that the landlord enjoys the full benefit of its bargain going forward.