Musicland shopping center landlords object to DIP lease assignment

By Caroline Salls

Pittsburgh, Jan. 27 - Musicland Holdings Corp. shopping center landlords objected to the company's debtor-in-possession financing, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the objection, the DIP request seeks to grant Musicland's liquidating agent the right to become a lessee of the company's Taubman leases if the agent forecloses on related liens without the requirement that it cure all defaults under the lease and satisfy the assignment requirements.

However, the objection said each of the Taubman leases prohibits assignment of the tenant's interest in the lease.

The landlords also requested that the final DIP order be modified to make it clear that the agent has no lien rights in connection with their leases.

A hearing on final DIP approval is scheduled for Feb. 7.

Musicland, a Minnetonka, Minn., specialty retailer of pre-recorded entertainment software products, filed for bankruptcy on Jan. 12. Its Chapter 11 case number is 06-10064.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.