In Re Loop Hospital Partnership

MEMORANDUM AND ORDER

ROBERT L. EISEN, Bankruptcy Judge.

This matter came before the court on a motion by Marine National Exchange Bank (Creditor) to compel Loop Hospital Partnership (Debtor) to assume or reject an unexpired lease agreement (Agreement) under 11 U.S.C. Section 865. Creditor maintains that the agreement for hospital equipment is a true lease. In response, debtor asserts that the lease is a disguised security agreement for the conditional sale of the equipment and therefore not subject to a Section 365 motion. After considering the parties’ pleadings and memoranda and applicable…