Generally, license agreements are “executory contracts” in bankruptcy. Executory means performance is due from both sides. When a party to an executory contract becomes a debtor in bankruptcy, it may either reject or assume the contract. However, non-debtor parties (or “counterparties”) enjoy some protections, especially when the contract is a license agreement for intellectual property.

The basics.

An interesting story has come out of the Olympic showjumping, with the dual silver medal winning 10 year old Belgian stallion named London, being seized as part of ongoing bankruptcy proceedings, leaving his German rider Gerco Schroeder horseless.

Mr Schroeder is now faced with the uncertainty of whether he will be able to continue to ride the talented stallion or if he will have to find himself a new backer and a new mount.