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Fifth Circuit Resolves 'Clash' Between FERC and Bankruptcy Courts

A Chapter 11 debtor's "rejection [(under Code §365(a)] of a filed-rate [natural gas] contract … relieve[d] it of the obligation to continue performance absent the approval of FERC [(the Federal Energy Regulatory Commission]," held the U.S. Court of Appeals for the Fifth Circuit.

7 minute read April 01, 2022 at 12:11 AM
By
Douglas S. Mintz and Michael L. Cook
Fifth Circuit Resolves 'Clash' Between FERC and Bankruptcy Courts

A Chapter 11 debtor's "rejection [(under Bankruptcy Code (Code) §365(a)] of a filed-rate [natural gas] contract … relieve[d] it of the obligation to continue performance absent the approval of FERC [(the Federal Energy Regulatory Commission]," held the U.S. Court of Appeals for the Fifth Circuit on March 14, 2022.

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