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MATTER OF GEC INDUSTRIES, INC.

Bankruptcy No. 89-44.

107 B.R. 491 (1989)

In the Matter of GEC INDUSTRIES, INC., f/k/a Gates Engineering Co., Inc., Debtor.

United States Bankruptcy Court, D. Delaware.

November 22, 1989.

Attorney(s) appearing for the Case

Douglas Smillie, Philadelphia, Pa., for debtor.

Kenneth F. Carobus, Philadelphia, Pa., for North American Philips Corp.

Douglas Canfield, Wilmington, Del., for Koger Properties, Inc.

William L. Witham, Jr., Dover, Del., for Carven Associates.

Steven N. Cousins, St. Louis, Mo., for St. Louis Community College.

Lawrence Freedman, Bethesda, Md., for Lake Park, Inc.

Leonard E. Collins, Jr., Law Dept. Hercules Inc., Wilmington, Del., for Hercules Inc.

Barbara James, UAW Legal Services Plan, Newark, Del., for Sybil and Lawrence W. Chantelois and Frank and Sharon Wiltfong.

Daniel Anker, Wilmington, Del., for Truth or Consequences School Dist.

Peter J. Walsh, Wilmington, Del., for Unsecured Creditors Committee.

Michael B. Joseph, Wilmington, Del., for Warranty Claimants Committee.

BENCH DECISION WITH ORDER

HELEN S. BALICK, Bankruptcy Judge.

Section 365 of the Bankruptcy Code provides for the assumption or rejection of executory contracts. GEC Industries, formerly Gates Engineering Company, has moved to reject as executory contracts warranties it issued with respect to roofing products and systems sold and/or installed before its bankruptcy filing.

Gates contends rejection is necessary so that the amount of its pre-petition...

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