United States Third Circuit

In a Chapter 11 bankruptcy case, district court's affirmance of the Bankruptcy Court's grant of debtor's motion to reject an agreement to sell substantially all of its industrial battery business on the ground that the agreement was an executory contract, subject to rejection under 11 U.S.C. section 365(a), and that rejection terminated the debtor's obligations under it, is vacated and remanded as: 1) the agreement is not an executory contract because it does not contain at least one ongoing material obligation for the other party; and 2) because the agreement is not an executory contract, the debtor cannot reject it.

Appellate Information

• Decided 06/01/2010
• Published 06/01/2010

Judges

Court

• United States Third Circuit

Counsel