Subscribe to glassBYTEs!

Diamond Lessor in Dothan, Ala., Files Objection with Court

The company that granted a lease to Diamond Glass for one of its now-closed locations in Dothan, Ala., has filed an objection with the U.S. Bankruptcy Court for the District of Delaware, claiming that Diamond should not be allowed to break its lease under the terms of its Chapter 11 filing. Woodland Development, Randolph Properties & Azalea Properties (WD) in Eufaula, Ala., filed the objection by a letter sent on April 11 and entered into the court on April 16.

According to the letter, Diamond's lease with WD began on October 1, 2006, with a rental agreement of $1,800 per month for use of the premises. Prior to the bankruptcy filing, Diamond had contacted WD to advise it would be vacating the building for day-to-day operations, but would pay rent as due until the end of the lease, "or at which time we were able to sublet the building."

"We have spent our time and money trying to sublet the building, but a weakened real estate market has left us unable to sublet the building at this time," writes Jay Solomon, partner in the development business. "Furthermore, Diamond Glass Companies' rent was due to be paid on April 1, 2008. The paperwork for consideration of Chapter 11 was not even mailed to us until April 1, 2008, and not to be considered by the courts until April 24, 2008. This is a direct violation of the lease agreement."

Solomon writes that the total amount due for the rent is $10,800 (for April, May, June, July, August and September-up until the lease runs out on October 1, 2008).

CLICK HERE for full text of objection.

Need more info and analysis about the issues?
CLICK HERE to subscribe to AGRR magazine.