500 Ygnacio Associates, Ltd. v. Aetna Life Insurance (In Re 500 Ygnacio Associates, Ltd.)

AMENDED MEMORANDUM OF DECISION

LESLIE TCHAIROVSRY, Bankruptcy Judge.

Defendant Aetna Life Insurance Co. (“Aetna”) moves to dismiss the complaint in the above-captioned adversary proceeding for failure to state a claim upon which relief may be granted. For the reasons stated below, the motion is granted without prejudice.

SUMMARY OF FACTS

Plaintiff 500 Ygnacio Associates, Ltd. (the “Debtor”), the debtor-in-possession in the above-captioned chapter 11 case, owns real property in California (the “Real Property”) which generates rents (the “Rents”). Aetna holds a security interest in the Real…