LETTER OF CREDIT APPLIES TO LANDLORD'S CAPPED CLAIM IN BANKRUPTCY
In an opinion issued today, the Ninth Circuit Court of Appeals has held that in calculating a landlord’s claim for breach of a lease, the proceeds of a letter of credit held as a security deposit must be deducted from the “capped” damages claim under Bankruptcy Code Section 502(b)(6), and not from the gross amount of the claim. AMB Property, L.P. v. Official Creditors for the Estate of AB Liquidating Corp. (In re AB Liquidating Corp.), Case No. 03-16979 (9th Cir. July 19, 2005). The full text of this opinion may be viewed at: http://www.ca9.uscourts.gov. (Click on “Opinions”.)
