Case No. 02-B-48191, (Jointly Administered)United States Bankruptcy Court, N.D. Illinois.
January 22, 2004
ORDER AUTHORIZING REJECTION OF LEASED AIRCRAFT AND ENGINES (N396UA and N908UA)
EUGENE WEDOFF, Bankruptcy Judge
Upon the Motion[1] of the Debtors for entry of an order authorizing the Debtors to, inter alia, reject the lease of one Boeing 737-322 aircraft and related engines, bearing tail number N396UA, and one Boeing 737-522 aircraft and related engines, bearing tail number N908UA; 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 having been given; it appearing that no other notice need be given; and after due deliberation and sufficient cause appearing therefore, it is hereby ORDERED THAT:
1. The Motion is granted,
2. The Leases for the Leased Aircraft and Engines set forth onExhibit A hereto are rejected as of the Effective Date.
3. On the Effective Date, the Debtors shall be deemed to have relinquished and surrendered possession of the Leased Aircraft and Engines.
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4. Upon receiving the written request from a Controlling Party with respect to the Leased Aircraft and Engines, the Debtors agree to provide such party with a bill of sale or lease termination statement to file with the Federal Aviation Administration in connection with such equipment; provided, however, that the Controlling Party shall be solely responsible for all costs associated, with such bill of sale, if any.
5. Any party asserting a claim arising out of or related to the rejection of the Leases shall file a proof of claim on account of such claim against the Debtors or their estates on or before sixty days after the Effective Dale.
6. Notwithstanding the possible applicability of Bankruptcy Rules 6006(d), 7062, 9014) or otherwise, this Order shall take effect immediately upon entry.
7. This Court retains jurisdiction with respect to all matters arising from or related to the implementation of this Order.
8. Nothing contained in this Order shall limit, modify, or supplement any of the Debtors’, Controlling Parties’, or any other parties’ rights or obligations under the applicable Adequate Protection Stipulations, including, without limitation, the Debtors’ obligations to comply with the return conditions stated therein with respect to the Aircraft and Engines (including with respect to the documents and records related thereto).
9. The entry of this Order shall be without prejudice to the rights of an interested party under Section 1110 of the Bankruptcy Code, if any, and without prejudice to the rights of the Debtors to contest any interested party’s Section 1110 rights (if any),
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10. All time periods set forth in this Order shall be calculated in accordance with Bankruptcy Rule 9006(a).
Exhibit A Leased Aircraft and Engines to be Rejected