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The Bankruptcy Hotline

By ALM Staff | Law Journal Newsletters |
April 26, 2004

First Circuit Rejects holding in Claremont

Becoming the first circuit court to address the issue since the Ninth Circuit's controversial ruling in In re Claremont Acquisition Corp., 113 F.3d 1029 (9th Cir. 1997), the First Circuit rejected the Ninth Circuit's rationale and has held that non-monetary defaults of unexpired leases are not required to be cured before assumption. Eagle Insurance Company and Newark Insurance Company v. BankVest Capital Corp. (In re BankVest Capital Corp.), No. 03-9006 (March 15, 2004).

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