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§ 365(e)(1)

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

Jul
18
2012
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
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Lehman Bros. Special Fin. Inc. v. BNY Corporate Tr. Servs. (In re Lehman Bros. Holdings Inc.)

Jan
25
2010
Ruling
Swap agreement provision calling for shift in debtor's priority in event of default was an unenforceable ipso facto clause.
Procedural posture

Plaintiff bankruptcy debtor brought an adversary proceeding against defendant trustee of a multi-issuer secured obligation program which held collateral for the benefit of a note-holder and the debtor as a counter-party under swap agreements, seeking a declaration that the debtor's priority in the collateral did not transfer to the note-holder due to the bankruptcy of the debtor's parent corporation. The debtor moved for summary judgment.

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Commercial opinion summary, case decided on January 25, 2010 , LexisNexis #0210-112
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Meiburger v. Endeka Enters. LLC (In re Tsiaoushis)

Jan
19
2007
Ruling
Debtor LLC's operating agreement was not an executory contract and was enforceable where debtor had no duties as manager or unperformed duties as member.
Procedural posture

Plaintiff trustee filed a motion for summary judgment on his adversary complaint for a declaration that the paragraphs in an operating agreement, which provided for the automatic dissolution of defendant limited liability company ("LLC") upon a member's bankruptcy filing, were valid and fully enforceable. Defendant manager opposed the motion, asserting that the agreement was an executory contract.

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opinion summary, case decided on January 19, 2007 , LexisNexis #0307-095
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