In Re Victoria Station Incorporated, Debtor. Willamette Waterfront, Ltd. v. Victoria Station Incorporated, and Jerry W. Marlow, Esq.

Appellee-debtor Victoria Station Incorporated and its affiliates operate a chain of boxcar restaurants which filed voluntary petitions for bankruptcy under Chapter 11 of the United States Bankruptcy Code, 11 U.S.C. § 101 , et seq., on May 20, 1986. 11 U.S.C. § 365 (d)(4) obligates a debtor to assume or reject a lease on nonresidential real property no later than 60 days after the petition’s filing unless the debtor moves within this 60-day period for an extension of time. Victoria Station filed a timely motion for an extension of time in which to assume or reject leases on 72 properties, including the property owned by appellant-lessor Willamette Waterfront, Ltd. (“Willamette”) in Oregon. The bankruptcy court granted an extension until December 31, 1986, but debtor moved for a second extension of time until March 31, 1987, which the bankruptcy court granted on December 22,1986. This appeal centers on the validity under section 365(d)(4) of this second extension of time.

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Willamette appeals from the Bankruptcy Appellate Panel’s (“BAP”) decision affirming the bankruptcy court’s final order entered on May 21, 1987, approving the assumption and assignment of Willamette’s lease. The…