Showtime’s Contract for the Production and Licensing of Vice Series Is Assignable to Purchaser of Vice Media Showtimes’s objection to Vice Media’s

Showtime’s Contract for the Production and Licensing of Vice Series Is Assignable to Purchaser of Vice Media Showtimes’s objection to Vice Media’s

assumption of a contract for the production and licensing of the documentary series “Vice” and its assignment to the purchaser of Vice Media’s assets was overruled by the

U.S. Bankruptcy Court for the Southern District of New York. Although both parties agreed that the contract was executory in nature, Showtime argued that it could not be assigned because it was a personal services contract which, under applicable state (California) law was not assignable.

As support, Showtime argued that it “bargained” for the series to be produced by Vice and not any other entity, and pointed to its right under the contract to approve key personnel.

The bankruptcy court disagreed. It noted that, generally, contracts with corporate entities are not personal services contracts. Moreover, it found that the contract did not identify specific individuals that would be involved in the production of the series.

Additionally, it further supported its conclusion in that, precisely because Showtime was granted approval rights over key personnel changes, the contract demonstrated that the parties anticipated the replacement of at least some employees.

Finally, the court found that the purchaser provided adequate assurance of future performance, based on two factors: (1) the purchaser’s stronger financial position in comparison to the debtor’s and (2) that the purchaser would retain the debtor’s management and creative talent. #bankruptcy #restructuring #contracts