District Judge Rakoff Explains Why the Debtor Alone May Assert a Cure Claim
A creditor can’t assert a cure claim, even though Section 365(b) doesn’t give the counterparty the sole right to demand a cure on assumption of an executory contract.
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Bankruptcy Code
Puerto Rico Case and the Efficacy of Prof. Westbrook’s Definition of ‘Executoriness’
The bankruptcy community needs a better definition of what’s an executory contract, and Prof. Jay Westbrook has it.
Tribal Law Defined the Nature of a Tribe Member’s Property Interest in Gaming Revenue
Federal law allows tribes to determine whether a tribe member’s interest in distributions of gaming revenue will be estate property in bankruptcy, Judge Ridgway says.
Utah Judge Engrafts Flexibility onto the Countryman Definition of Executory Contracts
Rooker-Feldman and other principles can bar rejection of a contract even if it’s ‘executory.’
Curing Defaults Isn’t Always Required Before Selling a Contract, Third Circuit Says
The ‘Countryman’ definition of an executory contract allows a debtor sell a contract without curing a default if the non-debtor counterparty has no further material, unperformed obligations.
Once Repudiated, a Contract Is No Longer Executory
Courts disagree on whether a repudiated contract remains executory.
Classic Car Club Manhattan Unit Files Bankruptcy Over Lease
A unit of Classic Car Club Manhattan, the private club that lets members drive its fleet of luxury vehicles, filed for chapter 11 protection on Friday in New York in an effort to preserve its location on Manhattan’s West Side, Bloomberg News reported. New York Classic Motors LLC holds the lease on the club’s space at Pier 76 near the Hudson River. The club is a tenant of Hudson River Park and received notice from the park in January that it needed to vacate the space as part of planned development, even though the club had more than four years remaining on its lease, according to co-founder Michael Prichinello. He called the bankruptcy a “defensive move” to preserve its space. The filing will delay any departure until a court ruling. “2020 was very difficult for everybody, and Classic Car Club did well,” Prichinello said in an interview. “We have a couple thousand members who are really dedicated. We are in a better financial position than we have ever been in our 17 years in New York City.” Other units of the company didn’t seek court protection. The club boasts a fleet of vintage and new luxury vehicles on its website including a 2016 McLaren 570S and a 1967 Porsche 912. Members pay $180 a month and buy points packages that grant them driving days for different types of cars. Prichinello said that while some members did leave the club due to pandemic-related moves, the club finished 2020 with more members than it had at the start of the year.