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122 Banking L.J. 31 (2005)
The Bankvest Case: The Supreme Court Lets Stand First Circuit Decision Favoring Preservation of Estate Assets for All Creditors, including Institutional Lenders

handle is hein.journals/blj122 and id is 33 raw text is: THE BANKVEST CASE: THE SUPREME COURT LETS STAND FIRST CIRCUIT DECISION FAVORING PRESERVATION OF ESTATE ASSETS FOR ALL CREDITORS, INCLUDING INSTITUTIONAL LENDERS JAY L. GOTTLIEB AND ARIANNA FRANKL The U.S. Supreme Court recently declined to review a decision issued by the Court ofAppeals for the First Circuit holding that bankruptcy debtors are not required to cure non-monetary defaults prior to assuming unexpired leases or executory contracts under Section 365 of the Bankruptcy Code. The First Circuit decision in In re Bankvest Capital Corp. may be viewed as contrary to a holding of the Ninth Circuit Court ofAppeals in In re Claremont Acquisition Corp., resulting in a split in the circuits. In this article, the authors discuss the Bankvest case and set forth their views on the consequences of the case and practical considerations for banks and other parties in similar circumstances. T he Bankvest case' involved interpretation of Bankruptcy Code § 365(b)(2)(D). This subsection is part of a larger provision of the Bankruptcy Code, Section 365, which permits a debtor to assume or reject executory contracts or unexpired leases which the debtor had entered Jay L. Gottlieb is a partner, and Arianna FrankI is an associate, at Brown Raysman Millstein Felder & Steiner LLP. Mr. Gottlieb represented Bankvest in the principle case discussed in this article, and Ms. Frankl assisted in the briefing. 31

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