Question: The Record Company Inc The Record Company entered into a
The Record Company, Inc. (The Record Company), entered into a purchase agreement to buy certain retail record stores from Bummbusiness, Inc. (Bummbusiness), All assets and inventory were included in the deal. The Record Company agreed to pay Bummbusiness $ 20,000 and to pay the $ 380,000 of trade debt owed by the stores. In exchange, Bummbusiness agreed not to compete with the new buyer for two years within a 15 mile radius of the stores and to use its best efforts to obtain an extension of the due dates for the trade debt. The Record Company began operating the stores but shortly thereafter filed a petition for Chapter 11 bankruptcy. At the time of the bankruptcy filing, (1) The Record Company owed Bummbusiness $ 10,000 and owed the trade debt of $ 380,000, and (2) Bummbusiness was obligated not to compete with The Record Company. Can The Record Company reject the purchase agreement? In re The Record Company, 8 B. R. 57, 1981 Bankr. Lexis 5157 (United States Bankruptcy Court for the Southern District of Indiana)
Answer to relevant QuestionsPeter and Geraldine Tabala (Debtors), husband and wife, purchased a house in Clarkstown, New York. They purchased a Carvel ice cream business for $ 70,000 with a loan obtained from People’s National Bank. In addition, the ...Robert Bolus was engaged in various businesses in which he sold and repaired trucks. He decided to build a truck repair facility in Bartonsville, Pennsylvania. Bolus contacted United Penn Bank (Bank) to obtain financing for ...Ray Johnson and his 8 year old son David were waiting for a “Walk” sign before crossing a street in downtown Salt Lake City. A truck owned by Newspaper Agency Corporation (NAC) and operated by its employee, Donald ...Whirlpool Corporation (Whirlpool) operated a manufacturing plant in Marion, Ohio, for the production of household appliances. Overhead conveyors transported appliance components throughout the plant. To protect employees ...Irma Rivera is a Hispanic woman who was born in Puerto Rico. She began working for Baccarat, Inc. (Baccarat), a distributor of fine crystal, as a sales representative in its retail store in Manhattan. Eight years later, ...
Post your question