4. (§14.20) Adequate Assurance of Future Performance
The trustee must also provide adequate assurance of future performance under the executory contract or lease before assumption will be approved by the court. 11 U.S.C. § 365(b)(1)(C). What constitutes adequate assurance is determined by the particular facts and equities of each case. See In re Sapolin Paints, Inc., 5 B.R. 412, 420–21 (Bankr. E.D.N.Y. 1980) (the term “adequate assurance” was intended to be given a practical, pragmatic construction in light of the facts of each case); In re Tex. Health Enters., Inc., 72 Fed. Appx. 122, 126 (5th Cir. 2003).
It has been suggested that § 400.2-609(1), RSMo 2000, of Missouri’s Uniform Commercial Code (UCC) may be applicable in considering the meaning of “adequate assurance” as it is used in the Bankruptcy Code. Section 400.2-609(1) provides that, “When reasonable grounds for insecurity arise with respect to the performance of either party the other...
