Opinion ID: 423752
Heading Depth: 1
Heading Rank: 6

Heading: Requirements for Assumption of Executory Contracts

Text: 32 Finally, Data-Link contends that Whitcomb & Keller's application for the enforcement of this essential executory contract and the Bankruptcy Court's mandatory order thereon (that Data-Link must perform) constituted an assumption with Court approval. 33 Under § 365(a) the trustee or debtor in possession, subject to the court's approval, may assume or reject any executory contract.... 11 U.S.C. § 365(a) (emphasis added). Interpreting similar language 6 in In re American National Trust, supra, 426 F.2d at 1064, this court declared:  'Assumption or adoption of the contract can only be effected through an express order of the judge.'  (quoting 6 Collier on Bankruptcy 576-80 (14th ed.)). No such order issued in the present case. Neither the bankruptcy court nor Whitcomb & Keller exhibited any intention of assuming the contract when the court enjoined Data-Link's termination of services. 7 We will not infer such intention. Instead, we find the order was directed solely toward maintaining the status quo--a permissible purpose well within the bankruptcy court's power, as we have noted.