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Velo Holdings Inc. v. Paymentech LLC (In re Velo Holdings Inc.)

Velo Holdings Inc. v. Paymentech LLC (In re Velo Holdings Inc.)

Ruling
Agreements that were not terminated prepetition were executory contracts that were property of the estate and could not be terminated by creditor postpetition.
Procedural posture

Affiliated debtors in possession filed an adversary proceeding seeking a permanent injunction pursuant to 11 U.S.C.S. §§ 105(a), 362(a), 365(e), and Fed. R. Bankr. P. 7065, barring creditor, their credit-card processor, from terminating certain credit-card-processing agreements. The creditor moved for relief from the automatic stay.

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Commercial opinion summary, case decided on July 18, 2012 , LexisNexis #0812-013