Pandemic order shrinks rent by 75%

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted July 14, 2020 10:24 AM

Based on a lease’s force majeure clause and Gov. J.B. Pritzker’s March 16 executive order on the COVID-19 pandemic, a bankruptcy judge tentatively concluded that Hitz Restaurant Group’s obligation for post-petition rent in a Chapter 11 case should be reduced from $10,561 to $2,640 per month, plus 25% of common area maintenance fees and real estate taxes, for the months it is limited to carry-out and delivery sales. In re Hitz Restaurant Group, No. 20 B 05012 (Bankruptcy Court, Northern Ill., June 2, 2020) …

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