Paul Ruth Trading Co. v. Royal Yarn Dyeing Corp. (In Re Royal Yarn Dyeing Corp.)

DECISION

CONRAD B. DUBERSTEIN, Chief Judge.

Disputes between landlords and tenants are not difficult to find in the bankruptcy court. Landlords are often angered by defaulting tenants who file petitions in bankruptcy either to stay a dispossess proceeding or in the hope of subleasing or assigning valuable properties to other entities at a profit. Nevertheless, the Bankruptcy Code condones such actions regardless of provisions to the contrary in leases in order to afford debtors the opportunity to avail themselves of such benefits in their efforts to reorganize.

FACTS

On July 27, 1948, Royal Yarn…