Weinstein Case Demonstrates Difficulties in Following Complex Bankruptcy Sales

Intro Everyone is likely familiar with the chapter 11 bankruptcy of The Weinstein Company (“”TWC“), an former film and production studio that previously produced and distributed featured films and premium television content internationally.  On March 19, 2018 (the “Petition Date“), TWC was forced to file bankruptcy following numerous claims of private misconduct against its co-founder, […]

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SCOTUS Determines Trademark Licensee’s Rights Survive Rejection by Debtor in Bankruptcy

A debtor has the right to assume or reject any executory contract or unexpired lease through its bankruptcy, pursuant to the Bankruptcy Code. A trademark license is an executory contract that is subject to assumption or rejection if performance remains due from both parties to the contract. A debtor will reject a trademark license if […]

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Third Circuit Enforces Tenant’s Rights After Debtor’s Sale of Real Property and Rejection of Lease

In IDEA Boardwalk, LLC v. Revel Entertainment Group, LLC (In re Revel AC Inc.), Case No. 17-3607, –F.3d–, 2018 WL 6259316 (3rd Cir. Nov. 30, 2018), the Third Circuit Court of Appeals recently enforced a tenant’s right to offset rent under a rejected lease of real property, pursuant to section 365(h) of the Bankruptcy Code […]

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Fifth Circuit Holds that Disguised Financing is not Entitled to Administrative Priority Claims

“To Lease or Not to Lease?” Whether an equipment lease is characterized as a true lease or a disguised financing in a bankruptcy setting determines what rights and remedies are available to the lessor. For example, if the lease is deemed to be a disguised financing, a debtor may retain possession of the leased property […]

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Does the Bankruptcy Code Adequately Protect Lessors?

The Bankruptcy Code often instructs a trustee or debtor to perform an act or make an election within a certain time. Sometimes the relevant provisions are intended to benefit a party in interest who is affected by a debtor’s or trustee’s action or election. Unfortunately, some of the provisions that prescribe a trustee or debtor […]

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Delaware Court Says You Cannot Separate an Integrated Lease

A Delaware Bankruptcy Court recently ruled that a debtor cannot assume only certain portions of a real property lease covering several, separate properties; instead the debtor must assume the entire lease (cum onere) or reject the entire lease.  See In re Contract Research, Inc., 12-11004 (Bankr. D. Del. May 1, 2013) (KJC).  This case is a good example […]

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