Phoenix Enterprises, LLC

1 	The amendments are merely to reflect the correct chapter
number and to correct the mailing list.
UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
PHOENIX ENTERPRISES, LLC,
Debtor.
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Case No. 07-00149
(Chapter 11)
Not for Publication
AMENDED 1 MEMORANDUM DECISION RE REJECTING
LEASE 	AND, TO THE EXTENT THEY ARE EXECUTORY
CONTRACTS, CASH COLLATERAL AGREEMENTS WITH LANDLORD
The debtor (as a debtor-in-possession exercising the powers
of a trustee) has moved to reject a Lease and two Cash Collateral
Agreements with Shirley Highway Distribution Center, LLC,
formerly known as Shirley Highway Distribution Center Partnership
(the “Landlord”), and the Landlord has filed an opposition.
The Landlord does not contest the debtor’s right to reject
the Lease, but seeks clarification, in whatever rejection order
the court enters, of the consequences of such rejection. 	Any
delay in rejection could possibly prejudice the estate by
permitting a continued accrual of postpetition rent. 	The court
will grant the motion insofar as it seeks to reject the Lease,
The decision below is signed as a decision of
the court.
Signed: April 30, 2007.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
Case 07-00149 Doc 49 Filed 04/30/07 Entered 04/30/07 16:28:19 Desc Main
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and the parties can pursue further relief if they cannot agree on
the effects of such rejection.
The Landlord contends that the two Cash Collateral
Agreements are not executory contracts, and probably correctly
contends that the security interests created by the Cash
Collateral Agreements would remain unaffected by an order
rejecting the Collateral Agreements if they are executory
contracts. 	The Landlord does not raise any basis for not
authorizing rejection if, indeed, the Cash Collateral Agreements
are executory contracts. 	The court will grant rejection of the
Cash Collateral Agreements to the extent that they are executory
contracts and deny rejection to the extent that they are not.
The debtor’s request for turnover of the amounts deposited
pursuant to the Cash Collateral Agreements will be dismissed
without prejudice for failure to commence an adversary proceeding
for turnover. 	F.R. Bankr. P. 7001. 	To the extent that it
becomes relevant to a turnover dispute, the court will decide in
addressing any proceeding for turnover whether the Cash
Collateral Agreements are executory contracts, and, if so, to
what extent, and the effects of such rejection.
An order follows.
[Signed and dated above.]
Copies to: Debtor; Debtor’s attorney; Office of United States
Trustee; Erik R. Quick, Esq.
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