Bankr. L. Rep. P 73,337 in Re Easebe Enterprises, Inc., D/B/A Chippendales, Debtor. David A. Gill v. Easebe Enterprises, Inc.

Easebe Enterprises, Inc., dba Chippen-dales (Easebe), a voluntary Chapter 11 debtor in bankruptcy, appeals the district court’s order affirming the bankruptcy court’s decision that it could not and did not exercise an option to purchase real property owned by Frank Piazza, Ruth Grossman and Don Saks, (“owners” or “lessors”), and leased to Easebe. We affirm.

Prior to filing a voluntary petition for relief under Chapter 11 of the Bankruptcy Code, Easebe held a leasehold interest in real property located at 3739 Overland Avenue in Los Angeles. The lease was entered into on November 19, 1973, and was modified on November 14, 1986 by a Judgment on Stipulation between the lessors and Ea-sebe during an unlawful detainer trial in California Superior Court. The original lease contained a one-year option to purchase that expired on December 31, 1975. Paragraph five of the Judgment on Stipulation contained a new option to purchase before May 15, 1987. The new option provided that Easebe could purchase the property for $800,000, payable by a cash deposit of $75,000 on or before May 15, 1987, with the balance financed by the lessors if Ea-sebe provided a note and first priority deed of trust…