In This Issue:

• The Treatment of the Master Service Agreement and its Associated Service Orders in a Telecommunications Bankruptcy
• The Southern District of New York Adds Its Two Cents to the Catapult Debate
• Contribute to the Technology & Telecommunications Committee Newsletter

Volume 4, Number 2 / June 2007

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The Treatment of the Master Service Agreement and its Associated Service Orders in a Telecommunications Bankruptcy
by James H. Lister
Birch Horton Bittner and Cherot, PC; Washington, D.C.

Telecommunications carriers generally assemble much of their network by leasing large numbers of point-to-point circuits from a handful of other providers (vendors). These arrangements generate recurring issues involving the rules for rejecting and assuming executory contracts and unexpired leases under §365 of the Bankruptcy Code.

Because so many point-to-point circuits are typically needed to assemble a network, the industry practice is for each purchasing carrier to enter into an umbrella master service agreement (MSA) with each of their vendors covering multiple-circuit leases with that vendor. Each circuit lease is usually called a service order.

Read the full article.

The Southern District of New York Adds Its Two Cents to the Catapult Debate
by Shirley S. Cho
Kirkland & Ellis LLP; Los Angeles

The debate over whether nonexclusive licenses can be assumed in the face of applicable nonbankruptcy law prohibiting assignment rages on. The battle lines are clearly drawn. Some circuits follow the so-called “hypothetical test” and prohibit assumption if applicable nonbankruptcy law would prohibit assignment of the contract to a hypothetical third party. Other circuits adhere to the so-called “actual test” and reach the opposite conclusion. A recent ruling of the U.S. Bankruptcy Court for the Southern District of New York illustrates that this debate has important implications in telecommunications and technology bankruptcy cases as well.

Read the full article.

Contribute to the Technology & Telecommunications Committee Newsletter

The Technology & Telecommunication Committee hopes you enjoy this e-newsletter. To make it a success, we need your help. The newsletter is a great place to showcase your articles, comments, essays, etc. on topics of interest to the committee’s members. Your contributions are welcome. For more information, please contact committee co-chairs William Snyder or Jason Gold.