water in order to comply with the requirements of § 602 of the lease, the work which the Trustee now seeks to have completed could have been defined in the provisions set forth in § 602 as repair work to put the building in such a condition as to make it tenantable. This work was necessitated by the abandoned and vandalized condition of the building, prior to this Chapter XII proceeding. The question here, therefore, is not whether the Trustee will be required to complete the renovations in accordance with a particular plan, but only concerns the undertaking of repairs for the purpose of procuring immediate assets so that the purposes for which the Trustee was appointed can be carried out, and I so hold.
The purpose of a Chapter XII proceeding is to provide relief for a debtor in order that he may be permitted to pay creditors over a period of time while continuing to operate his estate as a going business. In re Dick, 296 F.2d 912, C.A. 7, 1961. "The power of the reorganization court over the 'estates of bankrupts and the determination of controversies in relation thereto' exists though the debtor does not have title to the property in question." In re Imperial "400" National, Inc., 429 F.2d 671, C.A. 3, 1970. And includes any property of a debtor, no matter where located. In re Imperial "400" National, Inc., 429 F.2d 680, C.A. 3, 1970.
Thus, in the present case the Trustee, functioning as an agent of the Court acquired title to the lease in question, and his election not to disclaim the lease but rather to use this asset for the betterment of the entire estate precludes the lessor from terminating the lease for failure of the Trustee to make certain renovations which the Trustee cannot, or perhaps is not even required, in good conscience, to undertake to perform at this time. The Trustee, acting on behalf of the Court and for the best interests of all creditors has labored arduously before securing this favorable lease from GSA which will produce funds enuring to the benefit to all creditors, and ultimately to Urban as well. Thus, the fact that at this time he has undertaken to provide necessary and delayed maintenance repairs in order to render the facilities usable rather than make renovations which might not be of immediate or greater benefit to the lessor, or, as a matter of fact, to the debtor's estate will not oust the Trustee from occupancy, and this exercise of apparently sound business discretion will not be disturbed. Mosser v. Darrow, 341 U.S. 267, 71 S. Ct. 680, 95 L. Ed. 927 (1951).
There is another reason why the objection of Urban must be overruled. Urban is really not here as a party, and only came before this Court when the Trustee filed a petition for a special restraining order against Urban's activities. Urban had filed a proceeding in the Court of Common Pleas by which it attempted to procure a defeasance of the lease by way of judgment by confession in ejectment. After the special restraining order was filed calling Urban's attention to the original injunction issued in this proceeding, Urban either withdrew or quashed its proceeding in the Court of Common Pleas. See Urban Redevelopment Authority of Pittsburgh, as plaintiff, against Gerald N. Ziskind, Trustee in Bankruptcy for Pittsburgh-Duquesne Development Co., as defendant, at No. 1195 July 1971, Civil Division, in the Court of Common Pleas of Allegheny County, Pennsylvania.
Urban's next step was to come in as an objector against the Trustee's borrowing money for the payment of repairs for the building, and then it asserted its right to defeat the lease between the Trustee and itself. I am not convinced that this procedure presents a proper processing by which all creditors and interested parties in this proceeding have had a fair chance to evaluate any claim made by Urban to the Pepsi-Cola or Geyer Building, whichever it is called. This is important for the reason that the lease is practically the only remaining asset of the debtor, since even its right to cash in the hands of the Trustee is also being contested. And it is important for the further reason that equitably the rights of creditors and debtors must be considered as against any possible claim of Urban.
Urban encouraged the Trustee in his efforts to render the building useable and gave no indication that the lease would be called for termination. For these repairs the Trustee has expended or become obligated to the extent of about $40,000.00. With the procurement of a basic tenant such as GSA, Urban now seeks to terminate the lease and secure the enhanced value of the building. However, Urban has obligated itself for ninety-nine years, and presumably it willingly entered into the lease. It may not now come in by a collateral proceeding of this kind and thwart the Trustee's functions and purposes, or defeat the rights of those who are entitled to any benefits whatsoever by reason of this Chapter XII proceedings.
I am not convinced that the objection of Urban here is either basic or entitled to any meritorious consideration. Accordingly, the objection of Urban will be overruled and the Trustee's application for authority to borrow money will be approved.
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