Liberty Medical Can't Reject $40M Asset Deal, Judge Says

Law360, Wilmington (April 17, 2013, 7:56 PM EDT) -- A Delaware bankruptcy judge on Wednesday nixed Liberty Medical Supply Inc.'s bid to reject a $40 million deal with Alere Inc., ruling the option agreement to transfer its diabetes testing supply business in exchange for the cancellation of debt is not an executory contract.

Liberty Medical and parent ATLS Acquisition LLC filed for bankruptcy Feb. 15, the date the asset deal was set to close, and a week later asked the court for permission to reject the contract, asserting this was permissible because Alere had not...
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