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The Bankruptcy Hotline

By ALM Staff | Law Journal Newsletters |
March 24, 2004

First Circuit Creates Circuit Split on Lease Assumption Issue

Becoming the first circuit court to address the issue since the Ninth Circuit's controversial ruling in In re Claremont Acquisition Corp., 113 F.3d 1029, 1034-35 (9th Cir. 1997), the First Circuit has rejected the Ninth Circuit's rationale holding that non-monetary defaults of unexpired leases are not required to be cured before assumption. Eagle Insurance Company and Newark Insurance Company v. BankVest Capital Corp. (In re BankVest Capital Corp.), No. 03-9006 (March 15, 2004).

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