Jan. 3, 2003

Debtor May Assign Executory Contracts or Unexpired Leases

Focus Column - Bankruptcy Law - By Leslie A. Cohen and Craig G. Margulies - The assignability of a contract or lease is a critical factor in a bankrupt debtor's ability to reorganize. The U.S. Bankruptcy Code allows debtors-in-possession or trustees to assign (or reject) executory contracts or unexpired leases, notwithstanding prohibitions in contracts or applicable nonbankruptcy law. 11 U.S.C. Section 365(f)(1).