Opinion ID: 423752
Heading Depth: 1
Heading Rank: 3

Heading: Authority to Enforce Executory Contract Pending

Text: Acceptance or Rejection 19 Acceptance and rejection of executory contracts are governed by Section 365 of the Bankruptcy Code. Title 11 U.S.C. § 365(d)(2) provides: 20 In a case under Chapter 9, 11 or 13 of this title, the trustee may assume or reject an executory contract or unexpired lease of the debtor at any time before the confirmation of a plan, but the court, on request of any party to such contract or lease, may order the trustee to determine within a specified period of time whether to assume or reject such contract or lease. 3 21 In In re American National Trust, 426 F.2d 1059, 1064 (7 Cir.1970), this court held that a trustee in a reorganization proceeding is entitled to a reasonable time to make a careful and informed evaluation as to possible burdens and benefits of an executory contract, quoting from 6 Collier on Bankruptcy (14th Ed.) 576-80. 22 The executory contract between Data-Link and Whitcomb & Keller was in effect on October 27, 1980, when Whitcomb & Keller filed its bankruptcy petition. The contract remained in effect until Whitcomb & Keller made its decision to assume or reject the contract. Before Whitcomb & Keller made its decision, however, Data-Link ceased providing essential computer services. Whitcomb & Keller then applied for the restraining order, as it had a right to do. Similarly, the bankruptcy court had the authority to preserve the status quo until Whitcomb & Keller made its decision. 4 The district court held that the bankruptcy court did not err in issuing the restraining order. We agree. 23