Authority of Debtor in Possession Regarding Executory Contracts

The video tutorial discusses the process of accepting or rejecting contracts during bankruptcy. It explains the powers of a debtor in possession, who can choose which contracts to accept or reject. The court may impose limitations on these decisions, requiring adequate assurance for accepted contracts and possibly restricting the transfer of contract rights. In some cases, the court allows modification of contract terms to aid in the debtor's reorganization, helping them emerge successfully from bankruptcy.

In what situations can a debtor modify contract terms?

What is the ultimate goal of reorganizing a debtor in bankruptcy?