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
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).
HERE for full text of objection.
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