What Is a Cure Claim and What Does It Mean That the Buyer Has to Provide Adequate Assurance of Future Performance Under My Contract?
Creditor's Rights Toolkit
Section 365 of the Bankruptcy Code allows a debtor to assume (retain) or assume and assign an executory contract to a third party, provided that all monetary and nonmonetary defaults are cured. In addition to curing all defaults, Section 365 of the Bankruptcy Code requires that the party to whom a debtor seeks to assign an executory contract provides adequate assurance of future performance under the contract.
This article briefly explains the key issues of a Cure Claim in a bankruptcy case. To access this article and read other insights from our Creditor's Rights Toolkit, please click here.