Bankruptcy Court Rules Limited Partnership Agreement Is Not an Executory Contract

Chair emeritus and finance and restructuring partner Andrew Kassner and counsel Joseph Argentina coauthored an article for The Legal Intelligencer titled “Bankruptcy Court Rules Limited Partnership Agreement Is Not an Executory Contract,” which discusses agreements that are considered executory contracts subject to assumption or rejection in bankruptcy cases. This was recently addressed in a case by the U.S. Bankruptcy Court for the District of Idaho.

Kassner and Argentina outline the partnership agreement and Chapter 7 proceeding of a limited partner, and they explain whether the partnership agreement was executory. The authors conclude that it may be time for practitioners to refresh their knowledge of the intersection of partnerships and bankruptcy, and consider what rights to exercise in addressing a distressed partner or partnership.