Bankruptcy judge rules settlement wasn’t an ‘executory contract,’ denies motion for discounted payment

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted February 15, 2023 10:05 AM

Ruling on a request to approve a settlement that would extinguish more than $46 million in claims for $3 million, a bankruptcy judge in California had to decide whether a prior, unconsummated deal between Svenhard’s Swedish Bakery and a union pension fund was an “executory contract” that could be assumed and assigned by a bankruptcy trustee under Sec. 365 of the Bankruptcy Code.United States Bakery (USB) “acquired the Svenhard’s bakery business in a multi-year creeping acquisition,” Bankruptcy Judge Christopher M. Klein …

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