Case No. 02-B-48191 (Jointly Administered).United States Bankruptcy Court, N.D. Illinois, Eastern Division.
April 16, 2004
ORDER APPROVING THE STIPULATION FOR (A) THE REJECTION OF THE AIRCRAFT LEASES FOR N344UA AND N345UA PURSUANT TO SECTION 365 OF THE BANKRUPTCY CODE AND (B) THE SETTLEMENT AND COMPROMISE OF CERTAIN AIRCRAFT-RELATED CLAIMS PURSUANT TO RULE 9019 OF THE FED. R. BANKR. P.
EUGENE WEDOFF, Bankruptcy Judge
Upon the Motion[1] of the Debtors seeking entry of an order approving the stipulation for (A) the rejection of the aircraft leases for N344UA and N345UA pursuant to section 365 of the Bankruptcy Code and (B) the settlement and compromise of certain aircraft-related claims pursuant to Bankruptcy Rule 9019; it appearing that the relief requested is in the best interests of the Debtors’ estates, their creditors and other parties in interest; it appearing that the relief requested is essential to the continued operation of the Debtors’ businesses; it appearing that this Court has jurisdiction over this matter pursuant to 28 U.S.C. § 157 and 1334; it appearing that this proceeding is a core proceeding within the meaning of 28 U.S.C. § 157(b)(2); it appearing that venue is proper in this District pursuant to 28 U.S.C. § 1408 and 1409; adequate notice of the Motion having been given; it appearing that no other or further notice need be given; and after due deliberation and sufficient cause appearing therefor, it is hereby ORDERED THAT:
1. The Motion is granted.
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2. The Stipulation is approved.
3. The filing of the Stipulation in its redacted form is hereby approved pursuant to section 107(b) of the Bankruptcy Code.
4. The Debtors are authorized to reject the Leases as of the Effective Date and Surrender (as defined in the Stipulation) the Aircraft in accordance with the terms of the Stipulation.
5. On the Effective Date the Debtors shall Surrender the Aircraft to the Mortgagee in accordance with the terms of the Stipulation (it being understood that the Airport (as defined in the Stipulation)[2] shall not be the Debtors’ agent upon Surrender of the Aircraft).
6. The Debtors shall deliver the Aircraft Records to the Mortgagee or its designee on the Effective Date or within 20 days thereafter, in accordance with the terms of the Stipulation.
7. Upon written request from the Mortgagee, the Debtors shall provide the Mortgagee with a lease termination document to file with the Federal Aviation Administration in connection with the Aircraft; provided, however, that the Mortgagee shall be solely responsible for all costs associated with such lease termination document, if any.
8. The Debtors and the Mortgagee are authorized to enter into the Settlement pursuant to Rule 9019 of the Bankruptcy Rules in full settlement of any and all claims of the Debtors and the Mortgagee relating to the Aircraft Equipment, the Leases, the Lessee Documents, the Trust Indenture and the Term Sheets, and in accordance with the terms of the Stipulation. The Mortgagee’s right to assert an administrative expense claim shall be limited and payable solely in accordance with the terms of the Stipulation. The Mortgagee hereby shall be
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estopped from asserting any claims against the Debtors with respect to the Aircraft Equipment other than the Administrative Expense Claim and the Pre-Petition Claim.
9. The Mortgagee shall file a proof of claim on account of the Pre-Petition Claim on or before 60 days after the Effective Date.
10. The Debtors are authorized to take all actions necessary to consummate the Settlement.
11. This Order shall take effect immediately upon entry.
12. The Court shall hear and determine all matters arising from the implementation of this Order for which the Court has jurisdiction.
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