Case Citation
Legal Case Name

In Re Gunter Hotel Associates Case Brief

United States Bankruptcy Court, W.D. Texas1988Docket #1404277
96 B.R. 696 3 Tex.Bankr.Ct.Rep. 228 20 Collier Bankr. Cas. 2d 1034 1988 Bankr. LEXIS 2353 1988 WL 149148

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Case Brief Summary & Legal Analysis

General Brief
3 min read

tl;dr: A bankruptcy court denied a debtor’s conditional rejection of a license agreement but extended the deadline for assumption or rejection post-confirmation, finding it beneficial for reorganization and within its jurisdiction.

Legal Significance: Affirms bankruptcy court’s discretion under § 365(d)(2) and Rule 9006(b) to extend the executory contract assumption/rejection period post-confirmation if beneficial to the estate and jurisdiction is retained in the plan.

In Re Gunter Hotel Associates Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Gunter Hotel Associates (“Debtor”), in Chapter 11 bankruptcy, sought to reject a license agreement with Carlson Hospitality Group, Inc. (“Carlson”) that allowed it to operate as a “Radisson Hotel.” Rejection was desired due to concerns about Carlson operating a competing hotel and potential back fees if assumed. However, immediate rejection would harm the Debtor, as a national affiliation was crucial and new agreements were contingent on post-confirmation status. The Debtor proposed a “conditioned” rejection, postponing its effect and allowing continued use of Radisson’s system. Carlson argued rejection must be total and immediate, or the contract would survive confirmation. The Debtor’s plan included a clause retaining court jurisdiction over plan-related matters. The court had previously set the confirmation hearing as the deadline for assumption or rejection.

Court Holding & Legal Precedent

Issue: May a bankruptcy court, pursuant to 11 U.S.C. § 365(d)(2) and Bankruptcy Rule 9006(b), extend the deadline for a debtor to assume or reject an executory contract beyond the plan confirmation date, and what is the status of such a contract during this extended period?

Yes, the court denied both the Debtor’s motion for conditioned rejection and Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur si

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Legal Issue

May a bankruptcy court, pursuant to 11 U.S.C. § 365(d)(2) and Bankruptcy Rule 9006(b), extend the deadline for a debtor to assume or reject an executory contract beyond the plan confirmation date, and what is the status of such a contract during this extended period?

Conclusion

This case establishes that bankruptcy courts can, in limited circumstances and where Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequ

Legal Rule

Under 11 U.S.C. § 365(d)(2), a debtor may assume or reject an Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint

Legal Analysis

The court first determined that while rejection of the license agreement would Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullam

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Flash Summary

  • A debtor cannot conditionally reject an executory contract; rejection under §
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occae

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