In Re: United Air Lines, Inc., Debtor. United Air Lines, Inc. v. U.S. Bank National Association, Inc., City of Los Angeles

MANION, Circuit Judge.

To fund improvements at its facilities in the Los Angeles International Airport, United Air Lines, Inc., entered into a transaction with a bond-issuing, public entity named the Regional Airports Improvement Corporation (“RAIC”). Through this transaction, RAIC “subleases” certain airport facilities to United. After United entered bankruptcy, the true nature of the transaction was called into question. In adversary proceedings before the bankruptcy court against RAIC and two related parties (the City of Los Angeles and an indenture trustee), United sought to have the…