RGN Group Holdings LLC, and certain of its affiliates (“RGN” or the “Debtors”) filed voluntary Chapter 11 bankruptcy petitions in the United States Bankruptcy Court for the District of Delaware on August 17, 2020.
According to court filings, the Debtors are subsidiaries of Regus Corporation, a Delaware corporation that, together with its affiliates offers a network of on-demand office and co-working spaces, and ancillary services and support, to a variety of clients across a host of industries in over 1,000 locations in the United States and Canada. The Debtors operate Regus shared office suites in a multitude of locations.
Per the Declaration of James S. Feltman in Support of the Chapter 11 Petitions and First-Day Relief, Covid-19 has “severely disrupted business plans and operations for certain locations within the company’s U.S. portfolio. With the near universal adoption of work-from-home policies by U.S. businesses during the early months of the pandemic, demand for temporary office space has been depressed…” Decl., ¶ 27. This has impacted the company’s liquidity at the level of the Debtors’ U.S. portfolio.
As part of its first-day relief, RGN has filed a Motion to Approve Interim and Final Orders Establishing Notification Procedures for Lease Termination (the “Lease Termination Motion”). The Notice Procedures proposed by the Lease Termination Motion, among other things, generally require a commercial landlord to any lease with the Debtors to provide sufficient notice prior to the effective date of any intended action to terminate a lease. Landlords implicated by the Lease Termination Motion should consult with counsel to determine its impact upon them.
A hearing on the Lease Termination Motion is scheduled for Tuesday, August 25th at 2:00 p.m. before the Delaware Bankruptcy Court. While in bankruptcy, RGN plans to continue to approach landlords to re-negotiate leases while the automatic stay is in place under Section 365 of the Bankruptcy Code. Pursuant to the notice filed by the Debtors, objections to the Lease Termination Motion may be filed up to the start of the hearing.
The cases are pending before the Honorable Brendan L. Shannon. The lead case number is Case No. 20-11961-BLS.