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IN RE STONEBRIDGE TECHNOLOGIES, INC.

Bankruptcy No. 01-37474-HDH-11. Adversary No. 02-3187.

291 B.R. 63 (2003)

In re STONEBRIDGE TECHNOLOGIES, INC., Debtor. Dennis Faulkner, in his capacity as Trustee of the SBTI Liquidating Trust, Plaintiff, v. EOP-Colonnade of Dallas, LP, Defendant.

United States Bankruptcy Court, N.D. Texas, Dallas Division.

April 4, 2003.

Attorney(s) appearing for the Case

David W. Elmquist, Winstead, Sechrest & Minick, P.C., Dallas, TX, for Plaintiff.

Howard C. Rubin, Kessler & Collins, P.C., Dallas, TX, for Defendant.

AMENDED MEMORANDUM OPINION

HARLIN D. HALE, Bankruptcy Judge.

This memorandum opinion addresses a narrow issue of law: whether the letter of credit in this case is a security deposit subject to the lease rejection damages cap of 11 U.S.C. § 502(b)(6) or whether the letter of credit represents only a third-party obligation to the landlord, to which the damage limitation does not apply. For the reasons stated below, the Court finds that the letter...

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