Dena Kaufman | Bloomberg Law In re The Great Atlantic & Pacific Tea Company, Inc., 2011 BL 291498 (S.D.N.Y. Nov. 14, 2011)] The United States District Court for the Southern District of New York affirmed a final order of the bankruptcy court determining that the deposit of an amount representing two weeks of utility service providing utility companies with adequate assurance of payment for future utility service under 11 U.S.C. § 366 and prohibiting utility companies from modifying or discontinuing service. In so ruling, the district court rejected the interpretation of 11 U.S.C. § 366(c) subsequent to its amendment by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA") found in In re Lucre, Inc., 333 B.R. 151, 154 (Bankr. W.D. Mich. 2005) and advocated by the utility companies that, to prevent a loss of utility service, the debtor must first "provide the assurance payment in the amount and form demanded by the utility provider" prior to seeking relief from the bankruptcy court to modify the amount.
The Utility Motion and Order
Interpretation of Section 366(c)
Amount and Form of Adequate Assurance Payment
Extension of Section 366 Statutory Period
District Court Affirms Adequate Assurance of Payment Established By the Bankruptcy Court
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