A Clear Path To Section 363 Sale Challenges

Law360, New York (February 6, 2014, 2:58 PM EST) -- On Dec. 31, 2013, in Newco Energy v. Energytec Inc. (In re Energytec Inc),[1] the Fifth Circuit ruled that certain rights connected to a gas pipeline — in particular, the right to receive a "transportation fee" based on gas throughput and the requirement that the recipient of the transportation fee consent to any assignment of interests in the pipeline — were covenants running with the land under Texas law.

Because a covenant running with the land can survive a sale in bankruptcy and cannot be "rejected"...
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