Laserfiche WebLink
Case 16-42529 Doc 32 Filed 04/13/16 Entered 04/13/16 11:43:47 Main Document <br />Pg 14 of 21 <br />28. Courts regularly approve debtors' proposed assumptions or rejections upon <br />finding that such debtors have exercised their sound business judgment. See In re Crystalin, <br />L.L.C., 293 B.R. at 463-64 (The business judgment test "is not an onerous one and does not <br />require the bankruptcy court to place itself in the position of the trustee or debtor") (internal <br />quotation marks omitted); accord In re Steaks to Go, Inc., 226 B.R. 35, 37 (Bankr. E.D. Mo. <br />1998) (noting that a court will generally approve of a rejection of an executory contract "if the <br />rejection is based on the debtor['s] ... best business judgment in the circumstances"). See also <br />In re Audra -John Corp., 140 B.R. 752, 756 (Bankr. D. Minn. 1992) ("The [business judgment] <br />test embodies considerable deference to the proponent of the rejection ... so long as it can <br />articulate sound business reasons for repudiating the contract.") (internal citation omitted); In re <br />MF Global Holdings Ltd., 466 B.R. 239,242 (Bankr. S.D.N.Y. 2012) ("Courts generally will not <br />second-guess a debtor's business judgment ...."); Butler v. Resident Care Innovation Com., 241 <br />B.R. 37, 47 (D.R.I. 1999) ("[T]he reviewing court ought to defer to the Trustee's decision ... <br />unless the decision is so unreasonable that it could not be based on sound business judgment, but <br />only on bad faith or whim.") (internal quotation marks omitted); In re G Survivor Com., 171 <br />B.R. 755, 758 (Bankr. S.D.N.Y. 1994) affd sub nom. John Forsyth Co. v. G Licensing, 187 <br />B.R. 111 (S.D.N.Y. 1995) ("a bankrupt's decision to reject an executory contract because of <br />perceived business advantage requires that the decision be accepted by courts unless it is shown <br />that the bankrupt's decision was one taken in bad faith or in gross abuse" of the debtor's retained <br />business discretion); COR Route 5 Co. v. Penn Traffic Co. (In re Penn Traffic Co.), 524 F.3d <br />373, 383 (2d Cir. 2008) (The business judgment standard "presupposes that the estate will <br />assume a contract only where doing so will be to its economic advantage and will reject contracts <br />whose performance would benefit the counterparty at the expense of the estate"). <br />-14- <br />