In re Jamesway Corporation
United States Bankruptcy Court for the Southern District of New York
201 B.R. 73 (1996)
Relevant factsFree
Jamesway Corporation (debtor) sought to assume and assign its retail lease with Mass Mutual (successor-in-interest to Valley Green) to Rite Aid as part of its Chapter 11 reorganization; the lease contained a clause requiring Jamesway to pay the landlord 50 percent of any profit from assigning the lease, which Jamesway asked the court to declare unenforceable under § 365(f), and Mass Mutual objected.
IssueFree
Under § 365(f) of the Bankruptcy Code, may a debtor in possession assume and assign an unexpired prepetition lease free of any terms that restrict, condition, or prohibit the debtor's right to assign the lease?