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Case 16-42529 Doc 1478 Filed 10/24/16 Entered 10/24/16 20:24:17 Main Document <br />Pg4o#99 <br />7. As of the date hereof, each of the Debtors' unexpired leases set forth on <br />Exhibits A and B attached hereto (collectively, the "Leases")I are (a) prepetition leases that <br />remain subject to assumption or rejection pursuant to section 365 of the Bankruptcy Code and <br />(b) leases of nonresidential real property within the meaning of section 365(d) of the Bankruptcy <br />Code. <br />The Deadline to Assume or Reject the Leases <br />8. Pursuant to section 365(d)(4) of the Bankruptcy Code, the Debtors initially had <br />120 days from the Petition Date to assume or reject the Leases.2 The statutory 120 -day deadline <br />(the "Lease Election Deadline") was set to expire on August 17, 2016. Given the size and scope <br />of the Debtors' business and the complexity of their operations and financial affairs, the Debtors <br />believed it was necessary to seek an extension of the Lease Election Deadline, as permitted by <br />section 365(d)(4)(B) of the Bankruptcy Code.3 <br />9. Accordingly, on August 3, 2016, the Debtors filed the Motion of the Debtors and <br />Debtors in Possession for an Order Extending the Deadline to Assume or Reject Unexpired <br />Leases of Nonresidential Real Property [Docket No. 985] (the "Motion to Extend"). Pursuant to <br />Prior to, and contemporaneously with, the filing of this Motion, the Debtors filed motions to assume and <br />reject other leases of nonresidential real property. Nothing herein shall be construed as an effort to modify <br />the treatment of the leases of nonresidential real property subject to such motions. <br />Section 365(d)(4)(A) of the Bankruptcy Code provides: <br />Subject to subparagraph (B), an unexpired lease of nonresidential real property <br />under which the debtor is the lessee shall be deemed rejected, and the trustee <br />shall immediately surrender that nonresidential real property to the lessor, if the <br />trustee does not assume or reject the unexpired lease by the earlier of — <br />(i) the date that is 120 days after the date of the order for relief; or <br />(ii) the date of the entry of an order confirming a plan. <br />11 U.S.C. § 365(d)(4)(A). <br />Section 365(d)(4)(B)(i) of the Bankruptcy Code provides that "[t]he court may extend the period <br />determined under subparagraph (A), prior to the expiration of the 120 -day period, for 90 days on the <br />motion of the trustee or lessor for cause." 11 U.S.C. § 365(d)(4)(B)(i). <br />NAI -1502082594v7 4 <br />