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In re IYS Ventures, LLC

23 B 6782
Chapter 11 debtor operates gas stations, some owned and the rest leased from a national company (“CAP”) that also supplies fuel and licenses its marks.  Debtor sought authority to assume its agreements with CAP.  Meanwhile, CAP sought to compel rejection or, in the alternative, relief from the stay to terminate the agreements.  HELD: Assumption of the CAP agreements was a proper exercise of the Debtor’s business judgment.  There was no dispute that Debtor had no monetary defaults.  Its agreements with a number of management companies did not constitute assignments of its interests under the CAP agreements, and so were not nonmonetary defaults.  Even if certain additional actions could be considered nonmonetary, noncurable defaults, those were not material and did not cause substantial economic detriment.  Since there were no defaults under the CAP agreements, Debtor was not required to provide adequate assurance of future performance.  Moreover, the Code does not authorize the court to compel rejection, only to fix a time within which a debtor must decide whether to assume or reject.  In light of the court’s decision to approve assumption, stay relief was not warranted.

Thursday, April 4, 2024