In Re Ernie Haire Ford, Inc.

MEMORANDUM OPINION SUPPLEMENTING ORAL RULING GRANTING THE DEBTOR’S MOTIONS TO COMPEL LENDERS TO COMPLY WITH CONTRACTS

MICHAEL G. WILLIAMSON, Bankruptcy Judge.

Chapter 11 debtors in possession may not assume executory contracts that are agreements to extend financial accommodations to or for the benefit of the debtor. 11 U.S.C. § 365(c)(2) (2008). In this case, as of the date of the petition, the Debtor, Ernie Haire Ford, Inc. (“Ernie Haire Ford” or “Debtor”), and several third-party automobile finance companies, (“Auto Finance Companies”), 1 were parties to contracts setting forth the terms…