Post-Confirmation Assumption And Rejection

Law360, New York (February 26, 2009, 12:00 AM EST) -- While the Bankruptcy Code does not expressly provide for it, most parties in bankruptcy proceedings assume trustees or debtors-in-possession should be allowed a reasonable period of time to decide whether to assume or reject executory contracts.

The courts have tended to agree, stipulating debtors must make this decision by the date of confirmation of a plan of reorganization, and no later.

For example, the court in In re Dana Corp., 350 B.R. 144, 147 (Bankr. S.D.N.Y. 2006) stated “[I]t is clear policy of the Bankruptcy Code...
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