Verizon Communications filed with the U.S. Bankruptcy Court an objection to cure amounts in the executory contracts and unexpired leases to be assumed by the Debtors, pursuant to the Plan of Reorganization.
The objection asserts, “Although Verizon does not generally oppose assumption, it objects to such assumption to the extent that the proposed cure fails to satisfy all existing defaults in accordance with 11 U.S.C. section 365(b)….A cure under 11 U.S.C. section 365 means that all unpaid amounts due under the agreement have been paid….In addition, as the cases proceed and Verizon Business continues to provide postpetition services to the Debtors’ estates, additional amounts become due under the Agreement.”
In addition, “Any post-petition amounts due must also be paid to Verizon Business in order to cure the existing default. Accordingly, unless and until the Debtors cure the pre-petition balances owed to Verizon Business in full and pay any post-petition amounts which may be due, the Debtors cannot assume the Agreement.”
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