In re Standor Jewelers West
United States Bankruptcy Appellate Panel for the Ninth Circuit
129 B.R. 200 (1991)
Standor Jewelers West, Inc. (Standor) (plaintiff), the operator of four jewelry stores, filed a Chapter 11 bankruptcy petition. Standor sought to assign to Sterling, Inc. its lease of retail space in the South Coast Plaza Mall in Costa Mesa, California (South Coast) (defendant). South Coast objected to the assignment on the grounds that Standor had failed to provide adequate assurance that Standor would comply with a provision in the lease requiring it, as a condition of assignment, to pay South Coast 75 percent of the consideration given by Sterling to Standor for transfer of the lease. Applying 11 U.S.C. § 365(f), the bankruptcy court held that the lease could be assigned over South Coast’s objection. South Coast appealed.
Rule of Law
Holding and Reasoning (Jones, J.)
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