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IN RE ARDEN AND HOWE ASSOCIATES, LTD.

Bankruptcy No. 90-28068-C-11.

152 B.R. 971 (1993)

In re ARDEN AND HOWE ASSOCIATES, LTD., a California Limited Partnership, Debtor.

United States Bankruptcy Court, E.D. California.

March 31, 1993.

Attorney(s) appearing for the Case

Mark A. Serlin, Flaherty & Serlin, Sacramento, CA, for Chapter 11 Trustee.

Patrick Costello, Pillsbury, Madison & Sutro, and William McGrane, Zankel & McGrane, San Francisco, CA, for Home Exp., Inc.

John J. Hurley, Phillips, Lytle, Hitchcock, Blaine & Huber, Buffalo, NY, for Marine Midland Realty Credit Corp.

MEMORANDUM DECISION ON CONFIRMATION OF PLAN OF REORGANIZATION

CHRISTOPHER M. KLEIN, Bankruptcy Judge:

The contours of a lessee's right to remain in possession of a leasehold after the lessor rejects the lease pursuant to 11 U.S.C. § 365 are in issue. Confirmation of this plan of reorganization turns on whether a restrictive use covenant that "runs with the land" under state law can, after the lease is rejected, be enforced against one who acquires the...

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