rejection

Nevertheless, FERC Persisted

07/22/22

When U.S. Sen Elizabeth Warren continued to speak at the confirmation hearing for AG Jeff Sessions after being cautioned by Majority Leader Mitch McConnell, it gave rise to the feminist slogan, "Nevertheless, she persisted." A new opinion from the Fifth Circuit adapts that slogan to the Federal Energy Regulatory Commission's attempts to prevent debtors from rejecting regulatory energy contracts. Judge Jerry Smith's opinion in Case No.

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What are the landlord’s rights when the debtor-tenant decides to assume the lease?

02/23/15

Assumption of the lease is permissible even if the terms of the lease expressly prohibit assumption.  Section 365 of the Bankruptcy Code requires a debtor-tenant to meet certain criteria in order to “assume” a lease.  First, and most importantly, the tenant must cure any and all existing defaults, both monetary and non-monetary.  Second, the debtor-tenant must provide “adequate assurance” to the landlord that the debtor will be able to perform under the lease going forward.  The tenant’s obligation to cure defaults includes the payment of late charges or similar charges that arise under the

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Cherry Picking Contract Provisions in Bankruptcy: Not so Taboo After All?

08/06/13

One of the quintessential principles of the Bankruptcy Code is that when a debtor assumes an executory contract, it must assume the contract as a whole – a debtor cannot cherry pick the contract provisions it wants to assume while rejecting others. Two recent bankruptcy court decisions – In re Hawker Beechcraft, Inc. and In re Contract Research Solutions, Inc. – demonstrate a growing trend among debtors to test the parameters of this general rule.

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IRT Partners, L.P. and Equity One, Inc. v. Winn-Dixie Stores, Inc.: Opinion Affirming Denial of Motion to Amend Bankruptcy Claims Post-Confirmation

06/28/11

The Eleventh Circuit Court of Appeals affirmed a district court decision (which had, in turn, affirmed a bankruptcy court decision) sustaining the debtors’ (Winn-Dixie Stores, Inc. et al.) objections to the appellants’ (IRT Partners, L.P. and Equity One, Inc.) attempt to amend their claims post-confirmation of the debtors’ plan of reorganization. The claims arose in [...]

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