The US Bankruptcy Court for the Eastern District of Virginia (Supplemental order of 19 Nov 2009, Case No. 09-14766-RGM) held that § 103 German Insolvency Code granting the insolvency administrator the right to elect non-performance of executory contracts should enjoy priority over the US rule for executory contracts in § 365 US Bankruptcy Code which grants the contract parties certain rights to executory contracts.
In German insolvency proceedings, rights under executory contracts (including licence rights to intellectual property) may be elected to be non-performed by the German insolvency administrator even if the bankruptcy laws of the country in which the licencee is located provide other rules for executory contracts.
[Read More]Posted by Mario Lindner on Wednesday 04 Aug 2010