|Title||Bankruptcy Case of Byung Mook Cho, Case No. 17-22057-MMH; Jointly Administered with The New Belvedere Cleaners, Inc., Case No. 17-22058|
Michelle M. Harner
Bankruptcy Case of Byung Mook Cho, Case No. 17-22057-MMH; Jointly Administered with The New Belvedere Cleaners, Inc., Case No. 17-22058
Whether a contract is executory depends on the facts of the particular matter, the language of the subject agreement, and the consequences under applicable nonbankruptcy law of either party ceasing to perform any ongoing or remaining obligations under the contract. Here, the core purpose of the settlement agreement was to resolve the pending legal disputes between the parties, providing certainty and finality to each affected party. In exchange for the transfer of a certain business and a cash payment, the parties agreed to dismiss the litigation between them; the non-debtor parties agreed to dismiss, and to take certain other action in, related litigation involving a third party; and the parties agreed to refrain from disparaging each other and their respective businesses. Considering the totality of the circumstances and the core purpose of the settlement agreement, the Court determines that the settlement agreement is an executory contract and subject to rejection in the Debtors’ chapter 11 cases.