- Case Type:
- Case Status:
- 16-9106 (1st Circuit, Jan 12,2018) Published
- Bankruptcy court affirmed. BAP had affirmed in part and reversed in part.
- Procedural context:
- Mission (a creditor) had a contract with the debtor for use of its trademarks, intellectual property, and distribution rights. The debtor had difficulty, it claimed, with financial viability due to numerous contracts that it claimed were "starving" that viability. Thus it filed a chapter 11 case and immediately sought to reject numerous contracts, including that of the creditor. After various contested matter hearings, the bankruptcy court allowed the motion in all respects. On appeal, the BAP affirmed in part and reversed in part. The First Circuit, however, affirmed the Bankruptcy Court (Deasey, J.) in all respects.
- Debtor made specialized products -- such as towels, socks, headbands, and other accessories -- designed to remain at low temperatures even when used during exercise, which it marketed under the "Coolcore" and "Dr. Cool" brands. Mission and Debtor executed a Co- Marketing and Distribution Agreement, which serves as the focal point of this appeal. The Agreement provided Mission with three relevant categories of rights, as stated above.
- Kayatta (author) and Lynch, with Torruella concurring in part and dissenting in part.
3492 in the system
6 Being Processed