Regal Ordered To Pay Rent Despite COVID Theater Closures

By Hailey Konnath (June 27, 2022, 10:24 PM EDT) -- A Delaware state judge on Monday ruled that Regal Entertainment Group must pay $5.5 million in unpaid rent and other charges stemming from leases with Simon Property Group, finding that the pandemic doesn't excuse Regal from its rent payment obligations under the leases.

Delaware Judge Mary M. Johnston said in her order that Regal's leases with Simon contain so-called "force majeure" provisions that obligate the theaters to pay their rents in full and on time despite the occurrence of such an event.

"The provisions very broadly allocate the risk of unforeseen events," Judge Johnston said. "There is no authority presented or...

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