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Expert Analysis

Rejected! Power To Reject Charterparties In US Bankruptcy

Law360, New York (October 14, 2015, 3:52 PM EDT) -- In light of the challenging worldwide shipping market that has been encountered over the past several years, the current reality is that if you are in the shipping industry, the potential impact of a bankruptcy filing in the United States on your business is something that warrants serious consideration. One significant issue that should be of great concern is the rejection of executory contracts such as charterparties. Under §365 (11 U.S.C. §365) of the U.S. Bankruptcy Code, a debtor can reject charterparties that it deems uneconomic or burdensome....

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