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...
Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.