2. (§14.18) Prompt Cure of Defaults
It is quite common for the debtor to be in default under an executory contract or lease at the time the debtor has filed the bankruptcy petition or during the pendency of the case. Accordingly, the Bankruptcy Code requires the trustee either to cure the default before assumption or to provide adequate assurance that the cure will occur “promptly.” 11 U.S.C. § 365(b)(1)(A). What constitutes a “prompt” cure may vary according to the circumstances of the particular case. See, e.g., In re Daugherty, 102 B.R. 167 (Bankr. E.D. Mo. 1989) (Barta, C.J.) (a debtor’s proposal in a Chapter 13 plan, which did not cure
the default under a car lease until one year after filing, did
not promptly cure the default); cf. In re Coors of N. Miss., Inc.,
27 B.R. 918 (Bankr. N.D. Miss. 1983) (curing the default within a three-year period was sufficient for a prompt cure).
The court must also make the additional determination of whether the prompt cure is adequately assured. The viability of the debtor’s business and the accuracy of its business projections would be factors in making that determination. See, e.g., In re Berkshire Chem. Haulers, Inc....
