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§ 365(b)

In re Coffman

Ruling
Confirmation denied due to failure of plan to cure prepetition arrearages by lease termination date.
Procedural posture

A creditor objected to the confirmation of debtors'chapter 13 plan on the ground that the plan proposed a disparate treatment of claimants receiving conduit payments and that the plan did not provide for full payment of the creditor's arrearage claim by the lease termination date.

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Consumer opinion summary, case decided on September 24, 2008 , LexisNexis #1008-075

In re Bachrach Clothing Inc.

Ruling
Debtor's failure to pay real estate taxes for period of tenancy was a default.
Procedural posture

Movant, the vendee of certain of debtor's operating assets, sought an order requiring debtor to pay certain real estate taxes in connection with a lease that vendee was assuming. The taxes at issue related to a period of time during which debtor was in possession of the leasehold, raising the question of whether debtor's failure to pay those taxes constituted a default under 11 U.S.C. § 365(b)(1).

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opinion summary, case decided on August 02, 2007 , LexisNexis #0907-077

Abovenet Inc. v. SBC Telecom Inc.

Ruling
Simple default, rather than default as defined in agreement, is sufficient to require cure by debtor as prerequisite to assumption.
Procedural posture

Appellant debtor challenged an order of the United States Bankruptcy Judge sitting in a United States Bankruptcy Court, which denied its motion to assume a so-called Dark Fiber Agreement with appellee corporation. At issue was whether there was a default pursuant to 11 U.S.C. § 365(b)(1) under an agreement whereby appellant had agreed to build and appellee had agreed to lease a minimum commitment of fiber miles.

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opinion summary, case decided on February 27, 2007 , LexisNexis #0307-131

In re Legacy Health Care LLC

Ruling
Landlord entitled to fees and costs associated with enforcing lease terms against debtor nursing home operator.
Procedural posture

The reorganized debtor operated a nursing home on land leased from landlord. The lease contained a "prevailing party" provision. Under this provision, the landlord sought attorneys fees and costs incurred since the filing of the petition and incident to the debtor's reorganization efforts. The reorganized debtor argued that the provision has no application, but if it did, then it was the party that "prevailed."

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opinion summary, case decided on September 22, 2006 , LexisNexis #1206-014

In re Ames Dept Stores Inc.

Ruling
Assignment of lease for store not located in shopping center that would not disrupt tenant mix approved
Procedural posture

In jointly administered chapter 11 cases, debtor and its subsidiaries sought to assume and assign an unexpired lease of nonresidential real property in accordance with certain designation rights. The over-landlord of the store and others objected.

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opinion summary, case decided on July 05, 2006 , LexisNexis #1006-011

In re Gonzalez

Ruling
Debtor's proposed chapter 13 plan was not confirmable since the plan did not provide for the debtor assuming an executory contract.
Procedural posture

In a voluntary bankruptcy case, debtor presented her chapter 13 plan to the court for confirmation. Two creditors objected to the plan and moved to compel debtors to make payments and assume or reject an executory contract.

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opinion summary, case decided on January 03, 2006 , LexisNexis #0206-104