Also This Week, Cancellations from Lear Corp. and Cellcyte Genetics
The Reader's Digest Association Inc. filed voluntary pre-arranged petitions under Chapter 11 of the U.S. Bankruptcy Code on Aug. 24. Prior to the filing, more than 80% of the company's senior secured lenders had agreed in principle on the terms of a restructuring plan to significantly reduce its debt burden. Through Ch. 11, Reader's Digest is now looking to cancel seven leases and save itself $3.7 million/year in rental payments.
Lear Corp., a global supplier of automotive seating systems, electrical distribution systems and electronic products based in Southfield, MI, filed voluntary petitions in the U.S. Bankruptcy Court for the Southern District of New York in early July seeking relief under the provisions of Chapter 11. It too had reached an agreement in principle regarding a consensual debt restructuring with its secured lenders and its bondholders. It is looking to cancel six leases through bankruptcy reorganization.
Cellcyte Genetics Corp. entered into a lease termination agreement with its landlord terminating its lease at 1725 220th St. SE, Suite 103, in Bothell, WA. The lease was to run through Jan. 31, 2013. Monthly rent and utility costs over the course of the lease averaged approximately $47,000 per month. Cellcyte Genetics executed a promissory note in the amount of $275,000 and agreed to vacate the facility and leave certain of its furniture behind in full settlement of all amounts owing, and after set-off of prepaid rent in the amount of $69,616.
| Company || Address || Affected Parties || Comment |
| Reader's Digest || 1730 Rhode Island NW, Washington, DC || Rhode Island & M Associates || 1,800 SF; exp: 10/31/2013; $79,200 annual rent |
| Reader's Digest || 250 Old Orchard Road, Skokie, IL || Aurora - Old Orchard LLC, et al || 21,000 SF; exp: 6/30/2013; $624,000 annual rent |
| Reader's Digest || 600 N. Pine Island Road, Plantation, FL || Regus Management Group LLC || Suites 430, 454; exp: 9/30/2010; $28,800 annual rent |
| Reader's Digest || 11 River Bend Drive, Stamford, CT || River Bend Executive Center Inc. || 25,000 SF; exp: 8/31/2017; $564,000 annual rent |
| Reader's Digest || 512 Seventh Ave., New York, NY || 500-512 Seventh Avenue LP || 35,000 SF; exp: 6/30/2015; $1,512,000 annual rent |
| Reader's Digest || 1450 E. Parham Road, Richmond, VA || LIT Industrial LP; (Direct Holdings Customer Service Inc., sublandlord) || exp: 12/31/2011; $372,000 annual rent |
| Reader's Digest || Norfield Corporate Park, Fields Lane, North Salem, NY || Norfield Realty Corp. || 5,000 SF; exp: 6/30/2010; $51,600 annual rent |
| Lear Corp. || 300 E. Big Beaver Road, Troy, MI || Osprey-Troy Officecentre LLC; (General Physics Corp., sublandlord) || |
| Lear Corp. || 200 McIntyre Drive, Newark, DE || Newark Lear LLC c/o Stoltz Bros. Ltd. || |
| Lear Corp. || 36310 Eureka Road, Romulus, MI || Romulus Realty Ventures LLC, c/o Janko Properties LLC || |
| Lear Corp. || 35 Corporate Woods Drive, Bridgeton/Earth City, MO || Realty Associates Fund VIII LP, c/o Sansone Group/DDR LLC || |
| Lear Corp. || 25 Corporate Woods Drive, Bridgeton/Earth City, MO || Bank of America and Alwal A.B. Moore, as Co-Trustees of the Alice Anheuser Bems Moore Trust || |
| Lear Corp. || 47828 Halyard Drive, Plymouth,, MI || Demco 45 LLC || |
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