MATTER OF BARCLAY INDUSTRIES, INC.

Nos. 83-5322, 83-5323.

736 F.2d 75 (1984)

In the Matter of BARCLAY INDUSTRIES, INC., Debtor. Appeal of TWO-FORTY ASSOCIATES. In the Matter of BARCLAY INDUSTRIES, INC., Debtor. Appeal of TEACHERS INSURANCE & ANNUITY ASSOCIATION OF AMERICA.

United States Court of Appeals, Third Circuit.

Decided June 4, 1984.


Attorney(s) appearing for the Case

A. Dennis Terrell (argued), Shanley & Fisher, P.C., Morristown, N.J., for appellant Two-Forty Associates.

Crummy, Del Deo, Dolan & Purcell, Newark, N.J., Stroock & Stroock & Lavan, New York City, for appellant Teachers Ins. & Annuity Ass'n of America.

Joseph LeVow Steinberg (argued), William P. Munday, on the brief, Lowenstein, Sandler, Brochin, Kohl, Fisher, Boylan & Meanor, Roseland, N.J., for appellee Walter E. Heller & Co., Inc.

Philip R. Mann (argued), Shea & Gould, New York City, Ravin & Kesselhaut, West Orange, N.J., for appellee Barclay Industries, Inc.

Before SEITZ, Chief Judge, and GARTH and BECKER, Circuit Judges.


OPINION OF THE COURT

GARTH, Circuit Judge:

This appeal requires us to consider the effect of provisions in a lease assumed by a debtor-in-possession, Barclay Industries, Inc. (Barclay), which subsequently sought to execute a "collateral assignment" of its leasehold interest. The landlord, Teachers Insurance & Annuity Association of America (Teachers),1 opposes the assignment on the ground that the lease prohibits it, and...

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