Among the most valuable restructuring tools available to a chapter 11 debtor is the ability to assume or reject executory contracts pursuant to Section 365 of the Bankruptcy Code. No provision of the Bankruptcy Code requires that a chapter 11 debtor assume or reject an executory contract.
Accordingly, many courts have recognized a “no action” alternative – allowing an executory contract to “ride through” bankruptcy. In this podcast, David Fournier, a partner in Pepper’s Corporate Restructuring and Bankruptcy Practice Group, discusses how a contract can “ride through” bankruptcy and the risks associated with the process.
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