The auction for the assets of bankrupt LSC Communications has been postponed to August 25, from August 5, as book publishers recently lost a court battle to give them more time if the buyers elect not to assume their existing contracts. Because bankruptcy abrogates many existing obligations, the ultimate buyers of LSC’s assets would have the right to reject publishers’ contracts — perhaps wanting to renegotiate terms. If such buyers do reject any of the current publisher contracts, the recent judge’s order establishes a three-month “wind-down” period, during which any publishers whose contracts would be rejected would need to move […]
