Arizona-based Realty Executives is in the news with its recent Chapter 11 filing. A Yuma newspaper notes two features of the Realty Executives case which are common in Chapter 11 cases:
- “It’s business as usual for local agents.” In a Chapter 11, a business can continue to operate during the bankruptcy case.
- “The brokerage has been renegotiating its leases on several offices in Phoenix and Tucson that had been negotiated at the height of the real estate market and no longer were in line with current market conditions.” A Chapter 11 bankruptcy gives a debtor the right to reject burdensome leases. The debtor can either find new leases at rates more in line with the current market, or renegotiate with existing landlords.
If your Arizona business is struggling with leases negotiated at the height of the real estate market, you may wish to consult with an Arizona bankruptcy lawyer to determine whether a Chapter 11 bankruptcy makes sense for your situation. For a free consultation, call (480) 719-1152.