Opinion ID: 2557
Heading Depth: 1
Heading Rank: 4

Heading: The Debtor's Assumption and Assignment of the AT & T Contract

Text: Among the executory contracts proposed for assumption in the schedule attached to the Debtor's sale motion in this case was one with AT & T for that company to provide the Debtor with telecommunications services. The schedule indicated a cure cost of $11,406.43 for this contract. In its motion, the Debtor requested that the bankruptcy court set a deadline, or bar date, for the filing of any cure claim, with potential creditors to be advised that, absent such a filing, they would be limited to the cure amounts set forth in the contract schedule. a. The March 31, 2004 Bar Date Notice By order dated March 31, 2004, the bankruptcy court scheduled a hearing to consider the Debtor's proposed sale of its Synapse business assets as well as the assumption and assignment of the scheduled executory contracts. By the same order, the court fixed May 5, 2004, as the date by which any cure claim not then filed would be barred. The order specifically instructed parties to any scheduled executory contract to file proof of  all claims and arrearages against the Debtor under such executory contract that arose prior to the commencement of the Chapter 11 case (the `Cure Claim'). In re: U.S. Wireless Data, Inc., No. 04-12075, Order at 5 (Bankr.S.D.N.Y. Mar. 31, 2004) (March 31 Order) (emphasis added). Moreover, the March 31 Order warned that any party that is required to file a Cure Claim pursuant to this decretal paragraph, but fails to do so, shall be bound by the cure amount as set forth on [the contract schedule] and shall be forever barred from asserting any other cure claim(s) against the Debtor, its estate and/or any successful purchaser of the Debtor's assets arising under such executory contract. Id. The following day, the Debtor served notice by first-class mail on all non-debtor parties to the executory contracts that the bankruptcy court had fixed a bar date of May 5, 2004 for the assertion of any cure costs by the non-debtor parties to the executory contracts to be assumed and assigned to Purchaser under the Sale Agreement. Undated Notice of Auction Sale and Hearing on Consideration of Approval of Sale of Debtor's Synapse Assets, at 4, In re: U.S. Wireless Data, Inc., No. 04-12075 (Bankr.S.D.N.Y.2004). Included with this notice were copies of both the Debtor's March 26, 2004 sale motion (with its attached contract schedule) and the bankruptcy court's March 31 Order. b. The April 16, 2004 Bar Date Notice Approximately two weeks later, on April 16, 2004, the bankruptcy court issued another order approving auction and bidding procedures for the asset sale as well as the payment of a break-up fee. In this order, the court reiterated the cure claims bar date, stating that according to the [March 31 Order], all non-debtor parties to the Executory Contracts were directed to electronically file with the Clerk of the Bankruptcy Court a cure claim, setting forth all claims and arrearages against the Debtor due under such Executory Contract that arose prior to the Petition Date (the Cure Claim), ... on or before May 5, 2004 at 4:00 p.m., provided, however, that any party that is required to file a Cure Claim but fails to do so, will be bound by the cure amount as set forth on [the contract schedule] and will be forever barred from asserting any other claims against the Debtor, its estate and/or any successful purchaser of the Debtor's assets arising under such Executory Contract. In re: U.S. Wireless Data, Inc., No. 04-12075, Order at 5-6 ¶ 4(iii) (Bankr. S.D.N.Y. Apr. 16, 2004) (April 16 Order).