2016-04-25_GENERAL DOCUMENTS - C1992081 (3)

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Case 16-42529 Doc 32 Filed 04/13/16 Entered 04/13/16 11:43:47 Main Document Pg 13 of 21 (1st Cir. 1980) (recognizing the existence of a judicial power to authorize trustees to pay claims for goods and services that are indispensably necessary to the debtors' continued operation). Here, the ADM Agreement was fully collateralized as of the Petition Date. To the extent additional Credit Support is required under the ADM Agreement due to post-petition market movements or new trades, the Debtors seek the authority to provide such Credit Support immediately to ADM in accordance with their clearing relationship. The Debtors Should be Authorized to Assume the ADM Agreement 27. The ADM Agreement constitutes an executory contract that the Debtors may assume under section 365(a) of the Bankruptcy Code. Section 365(a) of the Bankruptcy Code provides, in pertinent part, that a debtor in possession, "subject to the court's approval, may assume or reject any executory contract or unexpired lease of the debtor." 11 U.S.C. § 365(a). See also NLRB v. Bildisco & Bildisco, 465 U.S. 513, 521 (1984) superseded by statute on other grounds, Pub. L. No. 98-353, § 541(a), 98 Stat. 390 (July, 10, 1984) Codified at 11 U.S.C. § 1113; Cameron v. Pfaff Plumbing & Heating Inc., 966 F.2d 414, 415 (8th Cir. 1992). Assumption or rejection of an executory contract by a debtor is subject to review under the business judgment standard. See In re Food Barn Stores, Inc., 107 F.3d at 567 n.16; In re Gateway Apparel, Inc., 210 B.R. 567, 570 (Bankr. E.D. Mo. 1997). "The purpose behind allowing the assumption or rejection of executory contracts is to permit the trustee or debtor -m - possession to use valuable property of the estate and to renounce title to and abandon burdensome property." In re Tama Beef Packing Inc., 277 B.R. 407, 413 (Bankr. N.D. Iowa 2002) (quoting Orion Pictures Corp. v. Showtime Networks (In re Orion Pictures Corn.), 4 F.3d 1095, 1098 (2d Cir. 1993)). -13-