In re Footstar, Inc.
United States Bankruptcy Court for the Southern District of New York
323 B.R. 566 (2005)
Footstar (debtor), which contracted with Kmart to supply and operate footwear departments in Kmart stores, sought in its Chapter 11 reorganization to assume, without assigning to any third party, its existing agreements with Kmart (defendant); Kmart objected to the assumption, invoking section 365(c)(1)'s limitation on assuming executory contracts where applicable law would excuse the nondebtor counterparty from accepting performance from someone other than the debtor and the counterparty objects.
Whether the limitation on assuming executory contracts under section 365(c)(1) of the bankruptcy code applies to a debtor in possession seeking to assume, but not assign, an executory contract.