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IN RE MERRY-GO-ROUND ENTERPRISES, INC.

Bankruptcy Nos. 94-5-0161-SD thru 94-5-0163-SD, and 94-5-3774-SD.

208 B.R. 637 (1997)

In re MERRY-GO-ROUND ENTERPRISES, INC., MGR Distribution Corporation, and MGRR, Inc., and Almeda Chess King, Inc., et al., Debtors.

United States Bankruptcy Court, D. Maryland, at Baltimore.

May 16, 1997.

Attorney(s) appearing for the Case

Deborah H. Devan, Neuberger, Quinn, Gielen, Rubin & Gibber, Baltimore, MD, Chapter 7 Trustee.

Joel I. Sher, Richard M. Goldberg, Shapiro and Olander, Baltimore, MD, for Chapter 7 Trustee.

Joyce A. Kuhns, Shoshana Katz, Weinberg & Green, L.L.C., Baltimore, MD, for Simon DeBartolo Group Landlord.

Karen H. Moore, Asst. U.S. Trustee, Office of U.S. Trustee, Baltimore, MD.

SUPPLEMENTED MEMORANDUM OPINION PARTIALLY SUSTAINING TRUSTEE'S OBJECTIONS TO LANDLORD'S CLAIM FOR CUTLER RIDGE MALL LEASE TERMINATION

E. STEPHEN DERBY, Bankruptcy Judge.

I. Issue.

The issue for resolution is how a landlord's claim under a postpetition Chapter 11 lease should be treated when the Trustee rejects the lease after conversion to Chapter 7. The landlord has filed a Chapter 7 administrative claim for the damages arising from...

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