The Fate Of Anti-Assignment Clauses After Bankruptcy
August 22, 2013, 9:25 PM EDT
Law360, New York (August 22, 2013, 9:25 PM EDT) -- The Third Circuit held on July 30, 2013, that a reorganized Chapter 11 debtor could reopen its closed case, enabling the debtor assignee to enforce a purchase option in a real property lease despite the lease’s “anti-assignment provisions.” In re Lazy Days’ RV Center Inc., *5 (3d Cir. July 30, 2013).
Agreeing with the Delaware bankruptcy court but reversing the district court, the Third Circuit held that “the anti-assignment provision [in the lease] was unenforceable [under Bankruptcy Code § 365 (f)(3)] and that [the landlord’s] refusal...