IN RE CATAPULT ENTERTAINMENT, INC., 165 F.3d 747 (1999) CASE BRIEF

IN RE CATAPULT ENTERTAINMENT, INC.

165 F.3d 747 (1999)

NATURE OF THE CASE: Perlman (P) appealed a decision that affirmed the bankruptcy court's decision to approve the assumption of licenses under Catapult's (D) reorganization plan.

FACTS: D entered into two license agreements with P, wherein P granted to D the right to exploit patents and patent applications. D filed for Chapter 11 but before the filing D entered into a merger agreement with Mpath. They contemplated the filing of the bankruptcy, followed by a reorganization via a 'reverse triangular merger' involving Mpath, MPCAT Acquisition Corporation (MPCAT), and D. MPCAT would merge into D, leaving D as the surviving entity. D's creditors and equity holders would have received approximately $14 million in cash, notes, and securities. D would become a wholly-owned subsidiary of Mpath. The creditors and equity holders accepted the plan by the majorities required by the Bankruptcy Code. D filed a motion seeking to assume some 140 executory contracts and leases, including the P's licenses. P objected. The bankruptcy court granted the motion and approved the reorganization plan. The district court affirmed. P appealed.

ISSUE:


RULE OF LAW:


HOLDING AND DECISION:


LEGAL ANALYSIS:





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