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MATTER OF AUSTIN DEVELOPMENT CO.

No. 93-7127.

19 F.3d 1077 (1994)

In the Matter of AUSTIN DEVELOPMENT COMPANY, Debtor. EASTOVER BANK FOR SAVINGS, Appellant, v. SOWASHEE VENTURE, et al., Appellees, v. AUSTIN DEVELOPMENT COMPANY and J.C. Bell, Trustee, Appellants.

United States Court of Appeals, Fifth Circuit.

May 3, 1994.

Attorney(s) appearing for the Case

Pat H. Scanlon, John S. Simpson, Young, Scanlon & Sessum, Jackson, MS, for appellant.

Thomas E. Schwartz, Hattiesburg, MS, for Bell.

Thomas L. Webb, Bourdeaux & Jones, Meridian, MS, for Sowashee Venture.

Robert H. Compton, Witherspoon & Compton, Meridian, MS, for R & S Theaters, Inc.

P. Scott Phillips, William & Glover, Meridian, MS, for United Artists.

Before HIGGINBOTHAM, DAVIS, and JONES, Circuit Judges.

EDITH H. JONES, Circuit Judge:

The debtor was a lessee under a ground lease and sublessor of a movie theater it built; it assigned its interest in the ground lease and the theater's income stream to a bank as security for various loans. During its Chapter 11 proceeding, the debtor's inaction led to an automatic rejection of its ground lease. 11 U.S.C. § 365(d)(4).1 The district court and bankruptcy court held that the "deemed rejection...

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