April 10, 2007
A Minority Decision from a Major Court
Judge Gerber, sitting in the Southern District of New York, followed the Footstar decision in adopting the "actual" test with respect to assumption of a franchise agreement. In In re Adelphia Communications Corp., 2007 WL 64128 (Bankr. S.D.N.Y. 2007), the Court needed to address the debtor's ability to assume and assign a franchise agreement. While the Court spent a significant amount of time analyzing the debtor's right to assign the contract, it easily and quickly dispensed with the question of assumption.
Labels: 365, assignment, assumption, license
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