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IN RE CONTINENTAL AIR LINES, INC.

Bankruptcy Nos. 84-04020-H1-5, 83-04019-H2-5, H-85-4034 and H-85-4183.

61 B.R. 758 (1986)

In re CONTINENTAL AIR LINES, INC., Debtor. CONTINENTAL AIR LINES, INC., Plaintiff, v. Larry L. HILLBLOM, People of Micronesia, Inc., Conrado L.G. Crisostomo, Trustee, Conrado L.G. Crisostomo, and Russ Curtis, Defendants. Larry L. HILLBLOM, People of Micronesia, Inc., Conrado L.G. Crisostomo, Trustee, Conrado L.G. Crisostomo, and Russ Curtis, Appellants, v. CONTINENTAL AIR LINES, INC., Appellee.

United States District Court, S.D. Texas, Houston Division.

As Amended May 29, 1986.

Attorney(s) appearing for the Case

Gerald Goldman, Hughes, Hubbard & Reed, Washington, D.C., Leonard M. Parkins, Sheinfeld, Maley & Kay, Houston, Tex., for plaintiff/appellee.

Parker C. Folse, III, Susman, Godfrey & McGowan, Houston, Tex., Peter J. Donnici, Dennis J. Kerwin, Donnici & Lupo, San Francisco, Cal., for defendants/appellants.

MEMORANDUM AND ORDER

CARL O. BUE, Jr., District Judge.

I. Introduction

This Court is required to determine how far a debtor-in-possession ("debtor")1 can plumb the depths of the protections afforded by the Bankruptcy Reform Act of 1978 ("the Code"). With this in mind, the underlying question presented for decision is as follows: Is a debtor permitted to enter into a marketplace as any other suitor, free from...

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