Cure Objection

Summary

This template cure objection is for use by a contract counterparty objecting to the debtor's proposed cure under the parties' executory contract or unexpired lease. This template includes practical guidance, drafting notes, alternate, and optional clauses. Executory contracts may be assumed by a debtor and assigned to a third party. Before a contract can be assumed, existing defaults must first be cured or assurance of prompt cure must be provided. 11 U.S.C. § 365(b)(1). Counterparties to the debtor's executory contracts may object to the assumption or assignment of their contracts when there are disagreements concerning outstanding amounts owed under the contracts because the debtor must cure all outstanding obligations prior to assuming and assigning its contracts (referred to as a cure objection). In a typical cure objection, the objection states the general law (that existing defaults must first be cured before a contract can be assumed), summarizes the agreements between the parties, details the amounts that must be paid to effectuate the cure, and attaches invoices evidencing the amounts owed. Thus, the objection, minus the exhibits, may be just a few pages when there are no disputed legal issues. For a full listing of key content that provides an overview of important topics when litigating disputes in bankruptcy cases, see Bankruptcy Litigation Resource Kit. For more information and related templates, see: • Assumption, Assignment, and Rejection of Executory Contracts • Special Considerations for Assumption, Assignment, and Rejection of Certain Executory Contracts • Selling Assets and Assigning Contracts and Leases in a Section 363 Sale • Section 363 Sales with Regard to Shopping Center Leases • Notice of Assumption and Assignment • Motion to Assume and Assign Executory Contracts or Unexpired Leases