IN RE LEISURE CORPORATION

BAP No. NC-98-1393-RPK, Bankruptcy No. 96-56324-ASW.

234 B.R. 916 (1999)

In re The LEISURE CORPORATION, Debtor. The Cannery Row Company, Appellant, v. The Leisure Corporation, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided June 7, 1999.


Attorney(s) appearing for the Case

Jonathan C. Battey, Law Offices of Gray & Battey, Monterey, CA, for The Cannery Row Company.

Kathryn M. Infante, Campeau & Thomas, San Jose, CA, for The Leisure Corporation.

Before: RUSSELL, PERRIS, and KLEIN, Bankruptcy Judges.


OPINION

RUSSELL, Bankruptcy Judge.

The bankruptcy court entered an order denying a lessor's motion for relief from the automatic stay under § 362.1 The order included a determination that the debtor in possession had validly exercised an option to extend its lease with the lessor, notwithstanding the existence of pre- and postpetition defaults under the lease. The lessor appeals. We VACATE and REMAND.

I....

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