Executory Contract Rejection in Bankruptcy: Leveraging the Rights of Contract Counterparties Under Tempnology
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will consider the rights, obligations and negotiating posture of a contract counterparty following the rejection of that contract under Bankruptcy Code Section 365. We will give particular consideration to how recent U.S. Supreme Court authority on this question has affected leverage and negotiating positions. We will also consider how creative counsel structure and draft agreements to maximize leverage in the event of a future insolvency or bankruptcy by one of the parties to the contract.
- Overview of statutory framework for contract rejection under Section 365(g)
- Tempnology decision and rationale
- Tempnology as applied in different types of agreements
- Oil & gas
- Debtor as licensee or grantee
- Debtor's post-rejection obligations
- Strategies for counterparties
The panel will review these and other pivotal issues:
- What types of vested rights and options do counterparties have?
- How can counterparties improve their positions in bankruptcy using the Tempnology rationale?
- Could the breaching party (the debtor) use "rejection as a breach" to enable the debtor to retain benefits without assuming contracts?
- Does the analysis change if the debtor is the party that holds the vested right, or as in Tempnology, is the licensee and not the licensor?
Jonathan W. Young
Mr. Young is Co-Chair of the Firm's Bankruptcy, Restructuring and Insolvency Practice Group. He regularly advises... | Read More
Mr. Young is Co-Chair of the Firm's Bankruptcy, Restructuring and Insolvency Practice Group. He regularly advises investors, lenders, directors, equity sponsors and portfolio companies in connection with their rights and obligations relative to financial distress, insolvency and bankruptcy situations. He also advises trustees, receivers and other fiduciaries charged with reorganizing, restructuring or liquidating financially distressed entities.Close
Ms. Rosenbloom's practice focuses on corporate restructuring, insolvency, bankruptcy and related litigation... | Read More
Ms. Rosenbloom's practice focuses on corporate restructuring, insolvency, bankruptcy and related litigation matters. She represents a wide spectrum of clients, including secured and unsecured creditors, corporate debtors, indenture trustees and other interested parties in bankruptcy-related transactions and out-of-court workouts. Ms. Rosenbloom advises clients on creditors' rights, distressed acquisitions and dispositions, debtor-in-possession financing, loan-to-own strategies, and other matters.Close