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    thoughtiwastheman's Avatar
    thoughtiwastheman Posts: 114, Reputation: 22
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    #1

    Jul 2, 2013, 07:00 AM
    Bankruptcy Law/Contract Law/Property Law/Landlord Tenant Law
    Quick question. If a company leases a section of my rooftop to place a telephone antenna but later files for bankruptcy and get it, what are my rights? They are no longer paying me rent, but their system is still on my roof. Can I keep the antenna? Can I get rid of it? Please explain. Thanks.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Jul 2, 2013, 07:07 AM
    If they file for bankruptcy they may still be in business or there may be a successor company. You need to try to contact the receiver who is handling the bankruptcy. Send them a letter stating that since rental payments have ceased they need to remove their equipment or you will seize for unpaid rent.
    thoughtiwastheman's Avatar
    thoughtiwastheman Posts: 114, Reputation: 22
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    #3

    Jul 2, 2013, 07:13 AM
    Thanks. Is there a process for seizing something, or it is simply giving them a time to reply and then taking it if they don't reply by the date?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #4

    Jul 2, 2013, 07:43 AM
    Quote Originally Posted by thoughtiwastheman View Post
    Thanks. Is there a process for seizing something, or it is simply giving them a time period to reply and then taking it if they don't reply by the date?
    Depends on local laws. You will probably have to sue them for unpaid rent, obtain a judgment and then apply for a writ of execution to seize the property.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #5

    Jul 2, 2013, 07:57 AM
    This is not something you are going to do, without an attorney, the antenna may or should be property listed in the bankruptcy, so it will be the court that may dispose of it, and your debt against them, is just part of the bankruptcy, have you responded to the bankruptcy court withiin the proper time, to validate your claim with them ?
    thoughtiwastheman's Avatar
    thoughtiwastheman Posts: 114, Reputation: 22
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    #6

    Jul 2, 2013, 08:19 AM
    They filed a motion for order determining that section 365(d)(4) of the bankruptcy code is not applicable to them and it was granted because it was determined that the contract was a license and not a nonresidential lease since they did not have exclusive right to possess or a property interest in the building.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #7

    Jul 2, 2013, 08:38 AM
    So why didn't you say that in the first place?

    But who is they? What is that code section for?
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #8

    Jul 2, 2013, 10:40 AM
    Rather than pulling out the info bit by bit, I think "we" need the whole story.

    If a Court has already made a determination, what's the question?
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #9

    Jul 2, 2013, 12:06 PM
    Quote Originally Posted by ScottGem View Post
    So why didn't you say that in the first place?

    But who is they? What is that code section for?
    "11 U.S.C. 365 : Executory contracts and unexpired leases
    ... "

    I think this is the pertinent part:

    "...
    (4)
    (A) Subject to subparagraph (B), an unexpired lease of
    nonresidential real property under which the debtor is the lessee
    shall be deemed rejected
    , and the trustee shall immediately
    surrender that nonresidential real property to the lessor, if the
    trustee does not assume or reject the unexpired lease
    by the
    earlier of -
    (i) the date that is 120 days after the date of the order for
    relief; or
    (ii) the date of the entry of an order confirming a plan.
    ...
    (B)
    (i) The court may extend the period determined under
    subparagraph (A), prior to the expiration of the 120-day period,
    for 90 days on the motion of the trustee or lessor for cause.

    (ii) If the court grants an extension under clause (i), the court
    may grant a subsequent extension only upon prior written consent of
    the lessor in each instance.
    ..."

    It appears that the trustee has abandoned the property.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #10

    Jul 2, 2013, 12:18 PM
    So it looks like, to me, the lessor tried to get possession of the antenna under that code and it was rejected. Again, facts that should have been included in the original question.

    Which also indicates that the OP has been in contact with the bankruptcy trustee so I don't know how much more we can help. Especially if the OP doesn't tell us the whole story.
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #11

    Jul 2, 2013, 12:29 PM
    Getting the info on the cancelled life insurance policy was like pulling teeth. This thread is the same.

    Hasn't the Court/trustee already spoken?
    thoughtiwastheman's Avatar
    thoughtiwastheman Posts: 114, Reputation: 22
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    #12

    Jul 2, 2013, 01:14 PM
    Subparagraph B would apply is there was a lease, in this case the court allowed the Debtors motion that Subparagraph B should not apply and they successfully argued that it should not apply because they did not have any property interest or exclusive right to possession. They argued that they only had a license-the authority to perform an act on the premises. Furthermore, the debtor had clients that they worked with before declaring bankruptcy, and they have been given the right to assume or reject the agreement after they figure out a workable solution with their former clients. The question remains, if the client eventually works out a solution with their former clients and ends up rejecting the license since subparagraph B didn't apply in the first place (only applies to a lease), what are my rights to remove the equipment from the roof after the fact?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #13

    Jul 2, 2013, 02:54 PM
    First, why did you not tell us about this in the first place? Second, as near as I can see the trustee needs to make the decision to remove and liquidate the assets. And you need to either work with the trustee or the bankruptcy court.

    As far as I can tell, you are not being harmed by the presence of the antenna. Its not interfering with the use of the property. So I would just wait until the bankruptcy is settled.
    thoughtiwastheman's Avatar
    thoughtiwastheman Posts: 114, Reputation: 22
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    #14

    Jul 3, 2013, 09:59 AM
    I thought so. Thanks. You guys have been great!
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #15

    Jul 3, 2013, 10:29 AM
    Quote Originally Posted by ScottGem View Post
    First, why did you not tell us about this in the first place? Second, as near as I can see the trustee needs to make the decision to remove and liquidate the assets. And you need to either work with the trustee or the bankruptcy court.

    As far as I can tell, you are not being harmed by the presence of the antenna. Its not interfering with the use of the property. So I would just wait until the bankruptcy is settled.
    It is not clear whether this is Chapter 7, 11, or 13, but it really doesn't matter (except that if it's an 11 the debtor is the trustee (in most cases)).

    So the trustee has no enforceable lease-hold. But the question remains whether the trustee has abandoned the personal property (the antenna). OP needs to check with the trustee about that.
    thoughtiwastheman's Avatar
    thoughtiwastheman Posts: 114, Reputation: 22
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    #16

    Jul 3, 2013, 11:20 AM
    This was a chapter 11. I will check with the trustee. Thank you.

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