IN RE PAN AM CORP.

Bankruptcy Nos. 91 B 10080 (CB)-91 B 10087 (CB).

124 B.R. 960 (1991)

In re PAN AM CORPORATION, et al., Debtors.

United States Bankruptcy Court, S.D. New York.

March 18, 1991.


Attorney(s) appearing for the Case

Cleary, Gottlieb, Steen & Hamilton by George Weisz, Jerome E. Hyman, Thomas J. Maloney, James W. Pharo, Robert P. Davis, Howard Zelbo, New York City, for debtors.

Milgrim, Thomajan & Lee by Peter D. Wolfson, New York City, for Creditors Committee.

Simpson Thacher & Bartlett by Myer O. Sigal, Jr., Mark J. Thompson, Steve M. Chaiken, Brian Trust, Daniel Sullivan, New York City, for AI Leasing II, Inc., Airbus Service Comp. Inc., CIT Group/Equipment Financing, Inc. and CIT Leasing Corp.

Weil, Gotshal & Manges by Marvin E. Jacob, New York City, for Evergreen Intern. Airlines, Inc. and Evergreen Ventures, Inc.

Weil, Gotshal & Manges by Bruce R. Zirinsky, New York City, for General Elec. Capital Corp., Eastern Airlines, Inc., Coblestone Corp. and Wilmington Trust Co.

Cohen Weiss & Simon by Richard Seltzer, New York City, for Airline Pilots Ass'n.

Wachtell, Lipton, Rosen & Katz by Amy R. Wolf, New York City, for United Technologies Corp. and Affiliates.

King & Spalding by Kathrine A. McLendon, Atlanta, Ga., for British Aerospace, Inc. and Jet Acceptance Corp.

Lord Day & Lord, Barrett Smith by William R. Brennan, William C. Clarke, New York City, for USAir, Inc., America West Airlines, Inc., Northwest Airlines, Inc. and American Airlines, Inc.

Walter, Conston, Alexander & Green, P.C. by Stephen H. Gross, New York City, for GATX, P.S. Group Inc., U.S. Airlease, Inc., Airlease Ltd., Intern. Air, Grand Central Partners (Nos. 1, 2 & 3), I.A.L. 361 Inc.

Shearman & Sterling by David L. Bleich, Veronica A. DeBerardine, New York City, for Citibank, N.A. and Citicorp North America, Inc.

Rosenman & Colin by Jeff J. Friedman, Maria Echaveste, New York City, for Unibank A/S, Integrated Aircraft Leasing Corp., (I, II & II), Nat. Westminster Bank, USA, and C & E Acquisition Corp.

Thelen, Marrin, Johnson & Bridges by Jonathan E. Polonsky, New York City, for Wells Fargo Bank.

Bruce H. Roswick by Bruce H. Roswick, New York City, for First Fidelity Bank.

Breed Abbott & Morgan by Daniel R. Goodman, New York City, for C. Itoh & Co., Ltd., Nissho Iwai, Corp., NMB Lease NV and Orix Corp. Citicorp Center.

Leboeuf, Lamb, Leiby & Macrae by Ira A. Reid, New York City, for U.S. Trust Co. of New York.

Reed Smith Shaw & McClay by David Ziegler, Pittsburgh, Pa., for Mellon Financial Services Corp. # 3.

Jacqlyn D. Stein by Jacqlyn D. Stein, Pittsburgh, Pa., for Mellon Bank.

Winthrop, Stimpson, Putnam & Roberts by Robert W. Gray, Eloise L. Morgan, New York City, for Bank of New York, Aeronautics I. Inc., and Aeronautics Four-Seven A. Inc.

Haight, Gardner, Poor & Havens by Jon Yard Arnason, New York City, for US Concord, Inc., LDI Financial Services Corp., Progress Leasing Corp., PLC Leasing Corp.

Feltman, Karesh, Major & Farbman by John I. Karesh, New York City, for Westinghouse Credit Corp., Greyhound Financial Corp., De Nationale Investeringsbank N.V., Credit Lyonnais/PK AIRFRANCE, PK Finans Intern. Corp., and Aerocar Aviation Corp.

Olwine, Connelly, Chase, O'Donnell & Weyher by Grace M. Healy, New York City, for United Aviation Services, Inc. and UAS Leasing I, Inc.

Mudge Rose Guthrie Alexander & Ferdon by David M. Friedman, New York City, for Avions de Transport Regional, G.I.E., et al.

Chadbourne & Parke by Kenneth P. Coleman, New York City, for First Sec. Bank of Utah, N.A.

Skadden, Arps, Slate, Meagher & Flom by George A. Zimmerman, New York City, for Polaris Aircraft Income Fund II.

Scheffler, Karlinsky & Stein by Robert P. Stein, New York City, for NCNB Nat. Bank of North Carolina, Inc.

Seward & Kissel by Ronald L. Cohen, New York City, for Partnairs US Leasing, Inc.

Hughes, Hubbard & Reed by David M. LeMay, New York City, for IBJ Schroder Leasing Corp.

Debevoise & Plimpton by Peter L. Borowitz, New York City, for Royce Credit Corp. & Rolls Royce Holdings Inc.

Volpe, Boskey and Lyons by Bennett Boskey, Washington, D.C., for American Ass'n of Equipment Lessors.

Pryor & Mandelup by Robert L. Pryor, Mineola, N.Y., for Sea/Air/Ground Leasing Corp.

Zalkin, Rodin & Goodman by Andrew D. Gottfried, New York City, for Boeing Co.

Perkins Coie by Michael Havers, Seattle, Wash., for Pacific Harbor Capital, Inc. and GM Aviation Services, S.A.

Siegel, Sommers & Schwartz by Lawrence C. Gottlieb, New York City, for United Aviation Services.


DECISION ON DEBTORS' MOTION PERTAINING TO SECTION 1110 OF THE BANKRUPTCY CODE

CORNELIUS BLACKSHEAR, Bankruptcy Judge.

THE MOTION

Pan Am Corporation et al. (the "Debtors") have filed a motion seeking a determination as to the reach of section 1110 of the Bankruptcy Code (the "Code"). Specifically, they seek a Court Order:

(a) declaring that the Debtors' non-acquisition sale leaseback transactions (the "Sale-Leasebacks") are not covered...

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