Process Am., Inc. v. Cynergy Holdings, LLC (In re Process Am., Inc.)

This memorandum addresses three separate motions pending in this bankruptcy case and related adversary proceeding:

As all arise from a common nucleus of facts, they will be discussed together.

BACKGROUND

The procedural history is extensive but highly relevant to the issues presented in these three motions, so it will be summarized first in some detail. On or about May 19, 2004, Process America ("Debtor") and Cynergy's predecessor entered into a contract related to credit and debit card processing (the "ISO Agreement"). In September 2009, Cynergy's predecessor filed a voluntary chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware (the "Cynergy Bankruptcy"). During the Cynergy Bankruptcy, Cynergy's predecessor moved to assume and assign the ISO Agreement (the "Assumption Motion"), within which it also sought to set forth a cure amount as to the ISO Agreement. In June 2010, in connection with the Assumption Motion and the related sale of certain assets by Cynergy's predecessor to Cynergy, the parties entered into a Cure Resolution Notice and Stipulation in Satisfaction of the Objection by Process America to the Debtors' Cure Notice (the "Cure…