In In re Sabine Oil & Gas Corporation, No. 15-11835 (SCC) (Bankr. S.D.N.Y. Mar. 8, 2016), the U.S. Bankruptcy Court for the Southern District of New York issued a bench decision granting Sabine Oil & Gas Corporation’s motion to reject three gas gathering agreements and a handling agreement that were governed by Texas law. In doing so, the bankruptcy court held that rejecting the gathering agreements was a proper exercise of Sabine’s business judgment and, in a nonbinding decision, found that the obligations arising under the gathering agreements were not covenants that ran with the land.
June 01, 2016 Articles
The Southern District of New York Authorizes the Rejection of Gas Gathering Agreements
Dismissal of a complaint without prejudice for failure to plead sufficient facts is not a final, appealable order.
By Zachary I. Shapiro
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