Tag Archives: adequate assurance
How Leases and Executory Contracts Are Handled in Chapter 11
For a business in Chapter 11 bankruptcy, leases and executory contracts can represent valuable assets or burdensome obligations. An executory contract is one where both parties have unperformed obligations. Leases, where rent payments remain outstanding and the landlord has obligations to maintain the property, fall under this category. Here are some key points a Chapter […]
Assumption or Assignment of Executory Contracts and Unexpired Leases in Chapter 11
An important aspect of Chapter 11 bankruptcy for debtors and creditors is the treatment of executory contracts and unexpired leases. Chapter 11 gives the debtor in possession, or in some cases the bankruptcy trustee, significant power to decide the fate of such agreements, in which both parties still have unfulfilled obligations. The debtor might assume […]
