News & Analysis as of

Debtors Section 365 Chapter 11

Troutman Pepper Locke

What Happens to Employment Agreements and Noncompete Agreements in Bankruptcy? - Creditor’s Rights Toolkit

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An employer’s bankruptcy filing can significantly impact an employee’s agreements with the debtor. While a reorganizing debtor may agree to continue honoring its obligations under employment agreements, the Bankruptcy Code...more

Jones Day

Ohio Bankruptcy Court Adopts "Actual Test" to Determine Whether Certain Unassignable Contracts Can Be Assumed in Bankruptcy

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Disagreement regarding the interpretation of section 365(c) of the Bankruptcy Code has led to divergent rulings among the bankruptcy and federal circuit courts regarding whether a bankruptcy trustee or chapter 11 debtor can...more

Cadwalader, Wickersham & Taft LLP

Does WeWork’s Going Concern Warning Signal a Potential Bankruptcy Filing?

Three years have passed since the COVID-19 pandemic reached the United States and its effects are still being felt today.  Even though lockdown measures have largely disappeared and many workers have returned to the office,...more

Jones Day

Default Under Assumed Lease Need Not Be Material or Ongoing to Trigger Landlord's Entitlement to Adequate Assurance of Future...

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The ability of a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") to assume, assume and assign, or reject executory contracts and unexpired leases is an important tool designed to promote a "fresh start" for...more

Greenberg Glusker LLP

When it Comes to Assuming Executory Contracts, a Default is a Default; But the Equities Still Matter

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The recent decision of the Ninth Circuit in In re Hawkeye Entertainment, LLC contains a few important takeaways with respect to the treatment of executory contracts and unexpired leases under section 365 of the Bankruptcy...more

Ballard Spahr LLP

Every Default Counts: Ninth Circuit Rules Tenant Must Provide ‘Adequate Assurance of Future Performance’ to Assume a Lease...

Ballard Spahr LLP on

Summary - A recent decision from the Ninth Circuit Court of Appeals illustrates the challenges faced by both bankrupt tenants and their landlords in the assumption of leases by tenants in bankruptcy proceedings. In the...more

Nelson Mullins Riley & Scarborough LLP

Bankruptcy 101: Ipso Facto Clauses - Bankruptcy Basics for New and Non-Bankruptcy Attorneys

This entry is part of Nelson Mullins’s ongoing “Bankruptcy Basics” blog series that is intended to address foundational aspects of bankruptcy for non-bankruptcy practitioners and professionals.  This entry will discuss how...more

Jones Day

Delaware Court Holds Rejection Eliminates Non-Debtor's Exclusive Right to Provide Services to the Debtor

Jones Day on

Nine Point Energy Holdings, Inc. and its affiliates (collectively, "Nine Point" or "Nine Point debtors") constituted an oil and gas production and exploration company that sought to reorganize in chapter 11 through a going...more

Jones Day

"Work-for-Hire" Film Production Agreement Not Executory Contract in Bankruptcy Due to Lack of Mutual Continuing Material...

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Whether a contract is "executory" such that it can be assumed, rejected, or assigned in bankruptcy is a question infrequently addressed by the circuit courts of appeals. The U.S. Court of Appeals for the Third Circuit...more

Greenberg Glusker LLP

License Rights and Bankruptcy: No “Silver Linings”

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The Third Circuit’s decision in Spyglass Media Company v. Cohen has added to what is already a tangled web of cases dealing with the rights of licensees and licensors when one of them becomes a debtor in bankruptcy. In...more

Quinn Emanuel

March 2021: Bankruptcy & Restructuring Litigation

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Bankruptcy Courts’ Willingness To Apply Rarely-Invoked Force Majeure Clauses During Pandemic Enhances Debtors’ Restructuring Options for Non-Residential Real Property Leases - The COVID-19 pandemic and resulting shutdown...more

Jones Day

The U.S. Supreme Court Rules That Rejection of a Trademark License Agreement in Bankruptcy Does Not Strip the Licensee of Its...

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In Mission Product Holdings, Inc. v. Tempnology, LLC, 139 S. Ct. 652, 2019 WL 2166392 (U.S. May 20, 2019), the U.S. Supreme Court ruled that the rejection in bankruptcy of a trademark license agreement, which constitutes a...more

Harris Beach Murtha PLLC

Supreme Court Brings Protections to Licensees of Trademarks

The United States Supreme Court has rendered a decision that represents a victory for licensees of trademarks throughout the country when faced with a bankrupt licensor....more

Mintz - Intellectual Property Viewpoints

U.S. Supreme Court Adopts Rule Protecting a Trademark Licensee’s Ability to Use a Trademark after a Bankrupt Licensor’s Rejection...

This past May, in a highly-anticipated decision, the Supreme Court held in Mission Product Holdings, Inc. v. Tempnology, LLC that a debtor’s rejection of an executory contract under Section 365 of the Bankruptcy Code has the...more

Foley & Lardner LLP

Preserving and Protecting Value Following the Recent Supreme Court Decision Shifting the Landscape on Intellectual Property...

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In May 2019, the U.S. Supreme Court decided the Mission Product Holdings, Inc. v. Tempnology, LLC case. The Mission Products Holdings decision provides a reminder to intellectual property license parties that periodic review...more

Eversheds Sutherland (US) LLP

When bankruptcy law and trademark licensing intersect - The Supreme Court’s decision in Mission Product Holdings Inc. v....

On May 20, 2019, the US Supreme Court clarified that when a trademark licensor rejects a trademark license agreement in a Chapter 11 bankruptcy proceeding, the rejection does not rescind the use rights of the licensee under...more

K&L Gates LLP

Distressed Solutions: Energy Bankruptcies and the Intersection of Contract Rejection and FERC

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We have seen an increase in energy companies filing for bankruptcy, and more may be on the horizon. This is a great time to review and discuss an interesting ruling in the FirstEnergy case regarding the intersection of...more

K&L Gates LLP

K&L Gates Triage: Sales of Healthcare Businesses in Chapter 11– The Basics

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A sale of a business under Section 363 of the U.S. Bankruptcy Code or through Chapter 11 can provide the best possible title to the purchaser and may be an appropriate avenue for selected assets or complex and valuable going...more

Morris James LLP

Section 365(f)(1) Used By Third Circuit to Maximize Estate's Value Through an Asset Sale

Morris James LLP on

In a non-precedential opinion filed on July 17, 2018, a copy of which may be found here, the Third Circuit Court of Appeals affirmed the ruling of the Delaware District Court approving an asset purchase agreement over...more

Lowndes

Treatment of IP Licenses in Bankruptcy

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As intellectual property becomes a more important part of commerce, the question of how IP licenses are treated in bankruptcy is of more interest to companies negotiating such licenses....more

Mintz - Bankruptcy & Restructuring Viewpoints

The First Circuit Casts a Shadow on Sunbeam

In the recently decided case, Mission Product Holdings, Inc. v. Tempnology, LLC, the United States Court of Appeals for the First Circuit took a hardline position that trademark license rights are not protected in bankruptcy....more

Cole Schotz

Tidewater Inc. Settles Its Remaining Charter Agreement Rejection Damage Claim After Judge Shannon Found Stipulated Loss Value...

Cole Schotz on

On November 28, 2017, Tidewater Inc. and its affiliated debtors (collectively, the “Tidewater Debtors”) withdrew their motion objecting to final allowance of rejection damage claims of Fifth Third Equipment Finance Company...more

BakerHostetler

Commercial Tenant Debtors in Chapter 11: Fundamentals of Landlord Creditor Protection in Bankruptcy

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Commercial landlords have unique protections in bankruptcy, but can lose these rights if they do not assert them. When a commercial tenant files bankruptcy under Chapter 11, the landlord must carefully monitor filings and...more

Jones Day

Kiwi Defense Doesn't Get Off the Ground in Preference Litigation Involving Related, but Severable, Contracts

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Among the required elements of a claim to avoid a preferential transfer under section 547(b) of the Bankruptcy Code is that, if the creditor-transferee were permitted to retain a pre-bankruptcy payment, it would end up being...more

Blank Rome LLP

The Right To Countersecurity From A Debtor In Bankruptcy

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U.S. maritime law offers a maritime plaintiff two principal means of obtaining security for its claims: Rule B attachment in respect of maritime claims, and Rule C arrest in respect of maritime liens. These rules are...more

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