Key Takeaway:  Second Circuit allows secured
creditors to opt out of chapter 11 and preserve their liens from discharge.

“Startin’ to feel like there’s nothin’ left to talk about but the, money, money

Bill collectors keep comin’ . . . to get money, money”

-Curtis James Jackson, III – “Money”

Here, at the Bankruptcy Blog, we are committed to keeping you up to speed on the current state of bankruptcy law. Today’s post provides readers with an update to a decision by the United States Bankruptcy Court for the District of Delaware, which considered whether the debtors were required to assume a bundle of related agreements as one executory contract, or whether the debtors could assume only those agreements that contained provisions most favorable to their ongoing operations.

“It’s not that I’m afraid to die, I just don’t want to be there when it happens.”  — Woody Allen

We have previously discussed default-rate interest and late fees in connection with a secured creditor’s claim.  Can a secured creditor choose to waive one in favor of the other if both are not available?  And when is a secured creditor entitled to default-rate interest in the first place

“Dream the impossible dream; eat the impossible sundae…”  So the song goes – or rather, went – at The Show Place Ice Cream Parlour in Beach Haven, New Jersey.  Sadly, The Show Place and the adjoining Surflight Theatre have closed their doors and will be liquidating their assets in chapter 7.  The authors have fond memories of shows at the Surflight and family outings to The Show Place, and we are now in the unenviable position of wishing the institution a melancholy happy trails.  So for this installment of Bankruptcy Beach Reading, we take you to Long Beach Island, New

Recharacterization: an overview

While commencing a bankruptcy case is most commonly undertaken voluntarily by the debtor itself, the Bankruptcy Code gives certain creditors authority to force certain entities into chapter 11 or 7 bankruptcy.  Unfortunately for the unwilling chapter 11 or 7 debtor, so long as petitioning creditors meet the statutory requirements to commence an involuntary case, the would be debtor will have no choice but to resolve itself under the Bankruptcy Code.  This was the fate of the debtor in 

We had a dream we’d go trav’lin’ together
We’d spread a little lovin then we’d keep movin’ on
Trav’lin’ along there’s a song that we’re singin’,
C’mon get happy
A whole lotta lovin’ is what we’ll be bringin’,
We’ll make you happy,
We’ll make you happy

(from “C’Mon Get Happy”)

On July 13, 2015, the Bankruptcy Court for the Southern District of New York issued its decision in In re OAS S.A. et al.