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BNY Capital Funding LLC v. Us Airways Inc.

BNY Capital Funding LLC v. Us Airways Inc.

Ruling
Court deemed that letter of intent did not constitute executory contract since there was no unperformed or future obligations.
Procedural posture

Appellant creditor challenged an order of the bankruptcy court, which determined that appellee debtor retained certain rights agreed to by appellant in a Letter of Intent ("LOI"), and that the LOI was not an executory contract and thus subject to the prohibition on assumption of contracts to extend financial accommodations under 11 U.S.C. § 365(c)(2).

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opinion summary, case decided on July 07, 2006 , LexisNexis #0806-051