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In re Caribbean Petroleum Corp.

In re Caribbean Petroleum Corp.

Ruling
Petroleum Marketing Practices Act did not prevent debtor from rejecting agreements with service station franchisees.
Procedural posture

The Chapter 11 debtors filed a motion pursuant to 11 U.S.C.S. § 365 to reject any or all of their agreements with service station franchisees upon the contemplated sale of substantially all of the debtors' assets. The franchisees objected, alleging that the Petroleum Marketing Practices Act (PMPA), 15 U.S.C.S. § 2801 et seq., extinguished the debtors' rights under the Bankruptcy Code to bring the rejection motion.

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Commercial opinion summary, case decided on December 08, 2010 , LexisNexis #0111-118