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Willie Nile's Bankruptcy
Highest Court S.D. New York
Year Ended 1982
Plaintiffs Nile, Willie
Defendants No Defendants on file
Other No Other parties on file
Short Description Recording artist Willie Nile, a lesser-known but critically-acclaimed singer-songwriter, filed for Chapter 11 bankruptcy, and sought to reject his recording contract with Arista Records, as was his legal right, for which he'd recorded several albums but left obligations outstanding. When Arista "vehemently" opposed Nile's attempts, he converted his bankruptcy to Chapter 7, hoping to make the process easier. Arista sued to re-convert the proceeding to Chapter 11, at which point they undoubtedly hoped to try forcing the contract on Nile despite his desire otherwise. The court found Arista's scheme unsatisfactory. Not only would forcing Nile to assume the contract defeat the purpose of bankruptcy, which is to afford "fresh starts," but Arista must have known this outcome was a possibility, as this type of litigation isn't exactly uncommon, and outcomes are relatively similar (personal services contracts for individuals' skill are rejectable in bankruptcy). Re-converting the case to Chapter 11, given that Arista cannot force Nile to assume the contract, is pointless. Sorry, Arista. - LSW

Legal Issues
Bankruptcy Chapter 11 Assumption/Rejection of Obligations
    Characterization/Distribution of Assets & Obligations
  General Chapter Conversion
Contracts Equitable Remedies Specific Performance

Opinions Matter of Noonan
17 B.R. 793
S.D. New York , February 22, 1982 ( No. 81-B-11263 )

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Related Searches Parties
Nile, Willie ( Plaintiff )

Legal Issues
Bankruptcy / Chapter 11 / Assumption/Rejection of Obligations
Bankruptcy / Chapter 11 / Characterization/Distribution of Assets & Obligations
Bankruptcy / General / Chapter Conversion
Contracts / Equitable Remedies / Specific Performance

S.D. New York (highest court)

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