United States Seventh Circuit

In Chapter 7 proceedings, bankruptcy court's rejection of the bankruptcy trustee's proposed assignments of the debtor's contracts with four Illinois landfills, and an order requiring a company, managed by the debtor's key officers, to pay the debtor's Chapter 7 operating expenses in exchange for the assignment of certain contracts, are affirmed where: 1) the bankruptcy court carefully evaluated the assumption-and-assignment proposal under section 365(f)(2)(B), and its decision to deny the trustee's motion was sound; 2) there is no reason to disturb the bankruptcy judge's determination that the company failed to comply with the court order requiring an escrow deposit; and 3) district court's contempt finding is fully supported by the record, and the court thoroughly considered and properly rejected the company's defense to contempt.

Appellate Information

• Argued 05/29/2010
• Decided 10/01/2010
• Published 10/01/2010

Judges

• SYKES

Court

• United States Seventh Circuit

Counsel