Editor’s Note: On June 16, 2016, The Bankruptcy Cave gave you our previous summary of the controversial Sabine decision. When Bankruptcy Judge Chapman determined there was no reason to expedite review of her decisions in the case, we brought you Sabine Lives On (and On) detailing the struggles of Sabine’s midstream adversaries. Like Hollywood, Bankruptcy Cave knows that sequels sell (with some notable awful exceptions, such as here and here). We now bring you the third installment of Sabine. If it sounds like a horror film or slasher flick, it was for the midstream sector.
The bankruptcy court was right! Judge Rakoff of the United States District Court for the Southern District of New York stated starkly: “[T]he bankruptcy court did not err in authorizing the rejection of the Agreements pursuant to 11 U.S.C. § 365(a). Nordheim challenges the decision only on the ground that the Agreements are real covenants that run with the land, and, since the Court reaches the contrary conclusion; Nordheim’s argument in this regard has no merit.”[i]
Backing up almost a year, on March 9, 2016, Bankruptcy Judge Chapman of the Southern District of New York issued