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A Non-Party’S Ability To Assert A Cure Claim Under 365(B)(1)(A) In New York, Brendan Shaw

Bankruptcy Research Library

(Excerpt)

Under section 365 of title 11 of the United States Code (the “Bankruptcy Code”), “[a] trustee [or debtor], subject to the court's approval, may assume or reject any executory contract or unexpired lease of the debtor.” Before assumption, a debtor must promptly cure or provide adequate assurance that it will promptly cure any defaults that existed at the time of assumption. Under New York law, an intended third-party beneficiary of a contract can enforce the terms of that contract.

This Article discusses how the Southern District of New York dealt with the issue of whether an intended third-party beneficiary …