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IN RE McCRORY CORP.

No. 96 Civ. 4576 (DC).

210 B.R. 934 (1997)

In re McCRORY CORPORATION, et al., Debtors. Morris W. NEWMAN, et al. ("Landlord No. 1"); Equitable Real Estate Co., Ltd., ("Landlord No. 2"); Leah Green, Rose Helene Summerfield, Theodor Zacks, Sylvia Taylor, Peter B. Krivel-Zacks and Melanie Zacks Gold ("Landlord No. 4"); and John W. Ormond, et al. ("Landlord No. 5"), Appellants, v. McCRORY CORPORATION, Appellee.

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

July 31, 1997.

Attorney(s) appearing for the Case

Fried, Frank, Harris, Shriver & Jacobson by Ira Sacks, New York City, for McCrory Corp.

White & Case by Andrew DeNatale, New York City, for Official Committee of Unsecured Creditors.

Office of U.S. Trustee by Mary Tom, New York City, for Trustee.

Gerard G. Metzger, New Orleans, LA, for Lessors.

OPINION

CHIN, District Judge.

In this bankruptcy appeal, the debtor McCrory Corporation ("McCrory") obtained an order from the bankruptcy court authorizing it to reject certain leases effective February 5, 1996. McCrory had been required under the leases to pay real estate taxes. Just a few days before the rejection date, however, real estate taxes for the entire year became due. The issue presented is whether, under § 365(d)(3) of the Bankruptcy...

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