Executory contracts in insolvency: The US perspective

Abstract

The chapter outlines the treatment of ongoing contracts under U.S. bankruptcy law. As evidenced below, the Bankruptcy Code attempts to empower the trustee or the debtor in possession to take advantage of the rights and assets of the bankruptcy estate. The power to assume or reject executory contracts constitutes a pivotal power in restructuring insolvency procedures. Thus, § 365 11 U.S. Code, as construed and interpreted by the Federal Courts, provides more protection to the bankruptcy estate than to non-debtor parties.