If a party to an agreement with the company was entitled to terminate the agreement prior to the reorganisation decision due to actual or anticipated delay in payment or performance, such party is prevented from effecting such termination provided the company with the administrator’s consent demands within a reasonable period of time that the agreement shall be performed. The company is also obliged at the request of the other party to provide notice whether the agreement will be performed.
There are of course certain conditions that have to be fulfilled by the company.
• If the performance of the other party is due, the company shall, if so requested, perform its corresponding obligations.
• If the performance of the other party is not due, the other party is entitled to receive security for the company’s future performance to the extent this is required by special cause in order to protect the other party against loss.
If the company should fail to provide a notice when requested by the other party or fail to fulfil the conditions mentioned above, the other party is entitled to terminate the agreement.
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