Southern pacific funding corporation liquidating trust cerita seks melayu wanita ikat lelaki
1998) (en banc) (citation and internal quotation marks omitted). This section was intended to deal with contractual ipso facto clauses, according to which the insolvency of a party automatically terminates the contract or constitutes a material breach.3 See generally H. What section 12.3 does require is that SPFC pay directly to the holders of Senior Indebtedness any payments to which the holders of the Notes would otherwise be entitled. It further provides that, notwithstanding the provisions of section 12.3, in the event that payments are made to the holders of the Notes, such payment shall be "held in trust" for the benefit of the holders of the Senior Indebtedness.
5963, 6304-05 (noting that enforcement of ipso facto clauses "frequently hampers rehabilitation efforts"). Even assuming arguendo, however, that the Indenture constitutes an executory contract under § 365(e)(1), we conclude that the statute cannot be applied to invalidate the Plan's distribution scheme.
By invalidating such clauses, § 365(e)(1) promotes the rehabilitation of the debtor by enabling the bankruptcy trustee to assume (and thus continue in force) beneficial contracts that otherwise would have terminated automatically or would have been terminated by the other contracting party. Even if SPFC had defaulted on one of its obligations to a Senior Indebtedness holder, Spieker still could have sought to enforce its lease, despite the fact that SPFC would have had to forgo payments to subordinated Note holders.