Scream or die! Global Brokerage issues “cure amounts” notice concerning 15 contracts and leases
Non-debtors have until January 10, 2018 to “scream or die”, that is, to file their objections to the cure amounts suggested by Global Brokerage.
“Scream or die” is not a line taken from a horror movie. In fact, this is a phrase often used in bankruptcy cases. The “scream or die” notice sent to creditors requires an objection by a dissenting party or the described action will be approved. In fact, this phrase is applicable to the latest notice submitted by Global Brokerage Inc (NASDAQ:GLBR), formerly known as FXCM Inc, in its Chapter 11 bankruptcy case.
On Wednesday, December 20, 2017, Global Brokerage gave notice of its intention to assume 15 agreements, to the extent such agreement is an executory contract or unexpired lease within the meaning of the Bankruptcy Code.
Let’s clarify that debtor’s ability to assume (affirm) executory contracts and unexpired leases in bankruptcy is seen as a primary tool available to a debtor under the Bankruptcy Code. This tool generally allows a debtor to keep favorable contracts (and compel continued performance by the non-debtor parties to such contracts).
Global Brokerage says it believes that any and all defaults (other than the filing of this chapter 11 case) and the actual pecuniary losses under the agreements it lists can be cured by the payment of the cure amounts suggested. Let’s note that 14 out of the 15 cure amounts proposed are for the amount of $0.00. The single exception is Wells Fargo Bank – the amount specified is $3,000. The list of contract counterparties for whom the cure amounts are equal to $0.00 includes names like Kenneth Grossman, Ernst & Young LLP, Deloitte & Touche LLP, NASDAQ Corporate Solutions, LLC, and LinkedIn Corporation.
If any non-debtor party to an agreement listed objects to the Cure Amount proposed for such agreement or objects to the assumption of such agreement, such party must file an objection (a “Cure Objection”) with the Bankruptcy Court and serve such Cure Objection so as to be actually received by 5:00 p.m. (Prevailing Eastern Time) on January 10, 2018.
A Cure Objection must set forth the cure amount the objector asserts is due, the specific types and dates of the alleged defaults, pecuniary losses, and the support therefore. No Cure Objection is needed if the non-debtor agrees with the Cure Amount listed.
The New York Southern Bankruptcy Court has scheduled a Combined Hearing in Global Brokerage’s Chapter 11 bankruptcy case for January 17, 2018, in line with the timetable proposed by Global Brokerage’s Counsel. At this hearing, the Bankruptcy Court will consider, among other things, the adequacy of the Disclosure Statement and confirmation of the Prepackaged Plan for Chapter 11 bankruptcy.
