05.10.2009 | Articles / Publications
Norton Bankruptcy Law Advisor: Performance Anxiety: The Nondebtor’s Dilemma Under § 365
A current commercial warns us that “life comes at you fast.” When a debtor files a Chapter 11 case, a flurry of activity ensues, part of which is often the debtor-in possession’s attempt to cajole or compel continued performance by nondebtors who have been providing goods or services to the debtor prepetition. Counsel for the nondebtor will experience “life comes at you fast” as the client responds to what ranges from friendly overtures to threats of annihilation by debtor’s counsel, who is trying to keep the debtor on life support as it attempts to reorganize or at least survive until a §365 sale.
To read the whole article, download the pdf here.