Featured Columns

One Contract, Indivisible, With Defenses and 'Kiwi' for All

Rudolph J. Di Massa Jr. 
and Jarret P. Hitchings | July 3, 2017

Under Section 365(a) of the Bankruptcy Code, a debtor in bankruptcy may assume executory contracts or unexpired leases to which the debtor was a party before its bankruptcy filing. Before it is permitted to do so, however, the debtor must cure any and all defaults existing under the agreement (see 11 U.S.C. 365(b)(1)), thereby making the nondebtor counter-party "whole" upon assumption.

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