In re Trinity River Resources, LP

In this case, Debtor’s liquidating trustee admitted that the Debtor owed money to cure defaults under contracts that were assumed and assigned to a buyer of all of the Debtor’s assets. But he wanted to hold the money and set it off against any judgment the Debtor obtained against the counterparty to the contracts in an unrelated adversary proceeding. The Court held that withholding the money in this manner would violate the prompt cure requirement in 11 U.S.C. § 365(b)(1).

WL Cite: In re Trinity River Resources, LP, 2018 WL 1882952 (Bankr. W.D. Tex. Apr. 18, 2018)