In re Howrey LLP
Opinion
Lead Opinion
Montali, J.
MEMORANDUM DECISION ON OBJECTIONS TO LANDLORDS’ CLAIMS
1. INTRODUCTION
On a question of apparent first impression, the court must decide whether claims of landlords for unpaid rent accruing during the interval between the filing of an involuntary petition and the order for relief are entitled to priority under the Bankruptcy Code. For the reasons that follow, the court concludes that they are entitled to gap priority and thus the objections will be overruled.
II. FACTS
Petitioning creditors filed an involuntary petition under chapter 7 2 against Howrey LLP (“Debtor”) on April 11, 2011 (the “Petition Date”). A majority of its attorneys had left the firm by then. A few weeks prior, Debtor had dissolved and began winding down its business. Debtor voluntarily converted its case to chapter 11, and an order for relief was entered on June 6, 2011 (“Conversion Date”).
At all material times Debtor was a lessee or sublessee at various locations. Five landlords or sublessors (or their assignees)(collectively “Landlords”) filed claims *374 based upon Debtor’s post-Conversion Date rejection of their leases or subleases (the “leases”). The Landlords have included in their claims, and…