Bankruptcy Court Orders Debtor to Comply With Post-Petition Lease Obligations Payable to Non-Lessors

Bankruptcy attorneys Brian Smith and Barbra Parlin wrote an article in Pratt’s Journal of Bankruptcy Law by LexisNexis discussing an airline bankruptcy case in which the court ruled that Avianca Holdings owed a third-party non-lessor fees even though the fees were accrued after filing for bankruptcy. In the case, the court ruled that although fees were accrued post-petition, the terms of payment to the third-party non-lessor were clearly defined in Avianca’s lease that was signed with their lessor pre-petition. In their article, Mr. Smith and Ms. Parlin highlight how this ruling could affect the drafting and structuring of similar leases in the future.

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