In Re Southwest Aircraft Services, Inc.

831 F.2d 848 56 USLW 2266 , 17 Collier Bankr.Cas.2d 976 , 16 Bankr.Ct.Dec. 1143 , Bankr. L. Rep. P 72,014 In re SOUTHWEST AIRCRAFT SERVICES, INC., Debtor and Debtor-in-Possession, Debtor. SOUTHWEST AIRCRAFT SERVICES, INC., Appellant, v. CITY OF LONG BEACH, and Atlantic Aviation, Appellees. No. 86-6520. United States Court of Appeals, Ninth Circuit. Argued and Submitted April 10, 1987. Decided Oct. 29, 1987. Richard K. Diamond, Danning, Gill, Gould, Diamond & Spector, Los Angeles, Cal., for debtor-appellant. Robert H. Shutan, Sidley & Austin, Los Angeles, Cal., for appellees. Appeal from the United States Bankruptcy Appellate Panel for the Ninth Circuit. Before ANDERSON, SKOPIL and REINHARDT, Circuit Judges. REINHARDT, Circuit Judge: 1 We are asked here to resolve a question of first impression in the circuit courts regarding the interpretation of section 365(d)(4) of the Bankruptcy Code. 11 U.S.C. Sec. 365 (d)(4) (Supp.1985). 1 The Code permits a debtor in bankruptcy to assume or reject any unexpired lease it may have. Id. Sec. 365(a). Under section 365(d)(4), a nonresidential lease is deemed rejected by a debtor-lessee unless that party assumes the lease within 60 days…