Motion to Extend the Time to Assume or Reject Nonresidential Real Property Leases

Summary

This motion to extend the time to assume or reject nonresidential real property leases template is for use by a debtor in a bankruptcy case. This template includes practical guidance, drafting notes, and optional clauses. Pursuant to Section 365(d)(4) of the Bankruptcy Code, all contracts where a debtor is lessee of nonresidential real property must be assumed within 120 days of the bankruptcy filing unless the bankruptcy court extends the time. Absent consent from the lessor, the bankruptcy court may only extend this 120-day period for 90 additional days. The bankruptcy court loses discretion after the passage of the 90 additional days. If these contracts are not assumed in the required time period, they will be deemed automatically rejected and the debtor must surrender possession of the premises. Note that a debtor may wait until a plan is confirmed to decide whether to assume or reject executory contracts where the debtor is not the lessee of nonresidential real property. For a template order granting this motion, see Order Extending the Time to Assume or Reject Nonresidential Real Property Leases. For more and related information on assumption, assignment, and rejection, see Bankruptcy Risks to Landlord When Tenant Files a Bankruptcy Case, Assumption, Assignment, and Rejection of Executory Contracts and Special Considerations for Assumption, Assignment, and Rejection of Certain Executory Contracts. For a checklist of pertinent issues when a debtor is a lessee to a nonresidential real property lease, see Unexpired Leases of Nonresidential Real Property Checklist. For a template motion to assume, see Motion to Assume and Assign Executory Contracts or Unexpired Leases.