IN RE FOOTSTAR, INC.

No. 04 B 22350(ASH).

323 B.R. 566 (2005)

In re FOOTSTAR, INC., et al., Debtors.

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

February 16, 2005.


Attorney(s) appearing for the Case

Weil, Gotshal & Manges LLP, By Martin J. Bienenstock, Esq., Paul M. Basta, Esq., Stephen D. Kahn, Esq., Penny P. Reid, Esq., New York City, for Debtors.

Wachtell, Lipton, Rosen & Katz, By Amy R. Wolf, Esq., Robert B. Mazur, Esq., Michael A. Charish, Esq., Emil A. Kleinhaus, Esq., New York City, for Kmart Corporation.

Kronish Lieb Weiner & Hellman LLP, By Lawrence C. Gottlieb, Esq., Jay R. Indyke, Esq., Richard S. Kanowitz, Esq., Brent Weisenberg, Esq., New York City, for the Official Committee of Unsecured Creditors.

Kramer Levin Naftalis & Frankel LLP, By Philip Bentley, Esq., David M. Feldman, Esq., Matthew J. Williams, Esq., New York City, for the Official Committee of Equity Security Holders.


DECISION ON MOTION TO ASSUME EXECUTORY CONTRACTS

ADLAI S. HARDIN, JR., Bankruptcy Judge.

Before the Court is the debtors' motion to assume their executory contracts with Kmart Corporation ("Kmart") pursuant to Section 365(a) of the Bankruptcy Code, 11 U.S.C. § 365(a). Kmart has opposed the motion, asserting that assumption is barred (i) as a matter of law under Section 365(c)(1), (ii) by the debtors' breaches of contract and (iii) because the...

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