Why Rejected Contracts in Chapter 11 Still Turn Into Claims Click the bio link to listen to the full episode. https://bio.link/parkinsrubio #Chapter11 #BankruptcyLaw #Contracts #BusinessLaw #LegalEducation #CorporateLaw #ClaimsProcess #Restructuring #EmploymentLaw #CourtProcess
"The rejection constitutes a breach under federal law of the contract giving rise to a damage claim for breach of contract, which would be part of the claims process resolved by the bankruptcy plan. And in certain instances, some types of claims, for example, lease claims and employment contract claims or collective bargaining claims in companies that have unions with collective bargaining agreements, are capped so the damages can be closed at a very low number relative to what would be available under state court litigation prescribed by the bankruptcy code so that these unique types of creditors don't dominate the recovery from the chapter 11 case."
💬 Discussion
Why Rejected Contracts in Chapter 11 Still Turn Into Claims Click the bio link to listen to the full episode. https://bio.link/parkinsrubio #Chapter11 #BankruptcyLaw #Contracts #BusinessLaw #LegalEducation #CorporateLaw #ClaimsProcess #Restructuring #EmploymentLaw #CourtProcess