Motion to Assume and Assign Executory Contracts or Unexpired Leases

Summary

This motion to assume and assign executory contracts or unexpired leases template is for use in a bankruptcy case. This template includes practical guidance, drafting notes, and alternate and optional clauses. Section 365(b)(1) of the Bankruptcy Code provides that a debtor may assume executory contracts and unexpired leases and subsequently assign them to a third party. However, the debtor must first cure existing defaults or provide assurances of prompt cure before the debtor can assume the contract. The Bankruptcy Code also requires a debtor to compensate or provide adequate assurance that the debtor will promptly compensate the non-debtor party for any actual pecuniary loss stemming from such default. This motion should be used when the debtor is seeking to assume and assign one or more contracts outside of a sale of assets (pursuant to Section 363 of the Bankruptcy Code). When the debtor is assuming and assigning contracts as part of a sale, the requested assumption/assignment is included in the sale motion. For a template sale motion that includes assumption and assignment procedures, see Sale Motion. For a complete list of content when representing a debtor that is filing for Chapter 11, see Filing for Chapter 11 Bankruptcy Resource Kit. For more information on assumption and assignment, see Assumption, Assignment, and Rejection of Executory Contracts, Special Considerations for Assumption, Assignment, and Rejection of Certain Executory Contracts, and Rejection and Assumption of Commercial Leases Video. For a template motion to reject, see Motion to Reject Executory Contracts or Unexpired Leases.