In a decision holding that surety bonds are not executory contracts, the Fifth Circuit signaled that courts may in the future utilize the functional approach to determine if multiparty contracts are executory in nature. The case, filed in the United States Bankruptcy Court for the Middle District of Louisiana as In re Falcon V, L.L.C.
United States Bankruptcy
Is That a Real Covenant, or Just an Executory Contract? Midstream Agreements to be Tested in Coming Wave of E&P Bankruptcy Cases.
By Eric Lockridge & Katilyn Hollowell on
Posted in Bankruptcy and Business Reorganization, Oil & Gas
Every few weeks, another news outlet reports that a wave of energy-related bankruptcy cases is on the way. See links below if you need some examples. A recent decision in the Alta Mesa bankruptcy case about pipeline contracts has some important lessons for producers and midstream companies evaluating how future bankruptcy cases may affect…