In Re Pac.-Atl. Trading Co., a California Corp., Debtor. Edward F. Towers, Tr. v. Chickering & Gregory, a P'ship, 27 F.3d 401 (9th Cir. 1994). · Go Syfert
In Re Pac.-Atl. Trading Co., a California Corp., Debtor. Edward F. Towers, Tr. v. Chickering & Gregory, a P'ship, 27 F.3d 401 (9th Cir. 1994). Cases Citing This Book View Copy Cite
159 citation events (93 in the last 25 years) across 38 distinct courts.
Strongest positive: JLM Couture, Inc. (deb, 2024-05-09)
Treatment trajectory · 1994 → 2026 · click a year to view as-of
1994 2010 2026
Top citers, strongest first. 50 distinct citers.
cited Cited as authority (rule) JLM Couture, Inc.
Bankr. D. Del. · 2024 · confidence medium
Trading Co.), 27 F.3d 401, 405 (9th Cir, 1994)). 43 Fd (cleaned up).
discussed Cited as authority (rule) In re Art & Architecture Books of the 21st Century (2×) also: Cited "see"
Bankr. C.D. Cal. · 2014 · confidence medium
Also, as held by the Ninth Circuit in Cukierman and other cases, 11 U.S.C. § 365 (d)(3) requires the payment of rent in the amount required by the lease (not some other “fair value” amount based on the estate’s actual use and occupancy of the premises), plus all other obligations of the tenant debtor under the lease (e.g., common area maintenance charges). 11 U.S.C. § 363 (d)(3); In re Cukierman, 265 F.3d at 850-851; In re LPM Corp., 300 F.3d 1134, 1137 (9th Cir.2002); In re Pacific-Atlantic Trading Co., 27 F.3d 401, 404-405 (9th Cir.1994).
discussed Cited as authority (rule) In Re Imperial Beverage Group, LLC
Bankr. N.D. Tex. · 2011 · confidence medium
These courts take the position that “[b]y providing for timely performance of all lease obligations, ‘notwithstanding [§ ] 503(b)(1),’ the statute has already granted priority payment status to the full amount of rent.” Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 404 (9th Cir.1994).
discussed Cited as authority (rule) Burival v. Roehrich (In Re Burival)
8th Cir. · 2010 · confidence medium
Savings Bank v. Orvco, Inc. (In re Orvco, Inc.), 95 B.R. 724, 727-28 (9th Cir. BAP 1989), overruled by Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 404-05 (9th Cir.1994).
discussed Cited as authority (rule) Burival v. Creditor Committee (In Re Burival) (2×)
8th Cir. BAP · 2009 · confidence medium
See, e.g., Cukierman v. Uecker (In re Cukierman), 265 F.3d 846 , 850 (9th Cir.2001); Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 405 (9th Cir.1994); El Paso Props.
discussed Cited as authority (rule) Richard Burival v. Loretta Roehrich
8th Cir. BAP · 2009 · confidence medium
See, e.g., Cukierman v. Uecker (In re Cukierman), 265 F.3d 846, 850 (9th Cir. 2001); Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 405 (9th Cir. 1994); El Paso Props.
cited Cited as authority (rule) In Re Iron Age Corp.
Bankr. D. Mass. · 2007 · confidence medium
Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 405 (9th Cir.1994).
discussed Cited as authority (rule) In Re at Home Corporation, a Delaware Corporation, Debtor. Pacific Shores Development, LLC v. At Home Corporation, Dba Excite at Home (2×)
9th Cir. · 2004 · confidence medium
Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 403 (9th Cir.1994).
discussed Cited as authority (rule) In Re TSB, Inc.
Bankr. D. Idaho · 2003 · confidence medium
Towers v. Chickening & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 403-05 (9th Cir.1994) (determining that a post-petition, pre-rejection claim be valued and asserted according to contract terms, not according to reasonable value or benefit bestowed).
discussed Cited as authority (rule) In Re National Refractories & Minerals Corp. (2×) also: Cited "see"
Bankr. N.D. Cal. · 2003 · confidence medium
In re Pacific-Atlantic Trading Co., 27 F.3d 401, 403-405 (9th Cir.1994). 2 The parties recognize that whether Cen-terpoint is entitled to an administrative claim for the Repair Costs and the Holdover Rent may depend on when the events occurred giving rise to Centerpoint’s claim.
discussed Cited as authority (rule) Stonebriar Mall Ltd. Partnership v. CCI Wireless, LLC (In Re CCI Wireless, LLC)
D. Colo. · 2003 · confidence medium
The Ninth Circuit has expressly rejected an argument that section 503 controls payment of rent under section 365(d): “[Such an argument] cannot be squared with the specific statutory direction that the obligations under section 365(d)(3) exist ‘notwithstanding section 503(b)(1).’ ” In re Pacific-Atlantic Trading Co., 27 F.3d 401, 404 (9th Cir.1994) (“The plain and unconditional language of the statute demands that a trustee promptly pay the full amount of rent due under a nonresidential real property lease during the 60-day period pending assumption or rejection”) See also In re Th…
cited Cited as authority (rule) Zions Credit Corp. v. Rebel Rents, Inc. (In Re Rebel Rents, Inc.)
Bankr. C.D. Cal. · 2003 · confidence medium
Id. at 404 (construing similar language in 11 U.S.C. § 365 (d)(3) with respect to nonresidential real property leases).
discussed Cited as authority (rule) In Re Bce West, L.P., Debtor, Einstein/noah Bagel Corp. v. Gerald K. Smith
9th Cir. · 2003 · confidence medium
We have previously determined that the purpose of this statute — to “ensure immediate payment of lease obligations so that the landlord is not left providing uncompensated services” — -is “evident from the legislative history of the section” and from the statements made by Senator Hatch during consideration of the bill amending the statute. 2 Cukierman v. Uecker (In re Cukierman). 265 F.3d 846, 850-51 (9th Cir.2001) (emphasis added); Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 403 (9th Cir.1994).
discussed Cited as authority (rule) In Re PYXSYS Corp. (2×)
Bankr. D. Mass. · 2003 · confidence medium
Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 404 (9th Cir.1994); In re Microvideo Learning Systems, Inc., 232 B.R. 602, 605 (Bankr.
cited Cited as authority (rule) In Re Lpm Corporation, Debtor, Kir Temecula v. Lpm Corporation Minson Corporation North County Bank Gerald H. Davis United States Trustee
9th Cir. · 2002 · confidence medium
In re Cukierman, 265 F.3d at 850; In re Pacific-Atlantic Trading Co., 27 F.3d at 401.
discussed Cited as authority (rule) In Re NETtel Corp., Inc.
D.D.C. · 2002 · confidence medium
In Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 405 (9th Cir.1994), the court held that rent for the prerejection period should be paid at the lease rate and not subjected to the actual and necessary requirements of § 503(b)(1): the trustee could not force the application of the actual and necessary requirements of § 503(b) to a claim for rent accruing during the prere-jection period by failing to pay rent on time as mandated by § 365(d)(3).
examined Cited as authority (rule) Cukierman v. Uecker (In re Cukierman) (4×) also: Cited "see"
9th Cir. · 2001 · confidence medium
See 11 U.S.C. § 365 (d)(3); In re Pacific-Atlantic Trading Co., 27 F.3d 401, 405 (9th Cir. 1994).
examined Cited as authority (rule) In Re: Moshe Eliezer Cukierman (4×) also: Cited "see"
9th Cir. · 2001 · confidence medium
See 11 U.S.C. §§ 365 (d)(3); In re Pacific-Atlantic Trading Co., 27 F.3d 401, 405 (9th Cir. 1994).
discussed Cited as authority (rule) In Re P.J. Clarke's Restaurant Corp. (2×) also: Cited "see, e.g."
Bankr. S.D.N.Y. · 2001 · confidence medium
See In re Handy Andy Home Improvement Centers, Inc., 144 F.3d 1125, 1128 (7th Cir. 1998); In re Pacific-Atlantic Trading Co., 27 F.3d 401, 403 (9th Cir.1994); In re Pudgie’s Development of NY, Inc., 239 B.R. 688, 692-693 (S.D.N.Y.1999).
discussed Cited as authority (rule) In Re LPM Corp.
Bankr. S.D. Cal. · 2000 · confidence medium
In In re Pacific-Atlantic Trading Co., 27 F.3d 401, 405 (9th Cir.1994), the Ninth Circuit Court of Appeals ordered immediate payment of the rent at the contract rate as an administrative expense, but specifically stated it expressed no opinion as to whether this administrative expense was entitled to su-perpriority. 6 .
discussed Cited as authority (rule) In Re Kirsch
Bankr. M.D. Fla. · 1999 · confidence medium
This interpretation of the Bankruptcy Code fails to give effect to the language in Section 365(d)(3) that the trustee or, as determined above, the chapter 13 debtor must comply with all lease obligations “notwithstanding section 503(b)(1)”. 221 B.R. at 899 (citing Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 404-405 (9th Cir.1994)).
discussed Cited as authority (rule) In Re Brewer
Bankr. E.D. Ark. · 1999 · confidence medium
Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 404 (9th Cir.1994); In re International Ventures, Inc., 215 B.R. 726, 728 (Bankr.E.D.Ark.1997); Augusta Mall Partnership v. Twigland Fashions, Inc. (In re Twigland Fashions, Inc.), 198 B.R. 199, 200 (W.D.Texas 1996); Fifth Ave.
discussed Cited as authority (rule) In Re J.T. Rapps, Inc. (2×) also: Cited "see"
Bankr. D. Mass. · 1998 · confidence medium
Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 403 (9th Cir.1994).
cited Cited as authority (rule) In Re Bryant Universal Roofing, Inc.
Bankr. D. Ariz. · 1998 · confidence medium
In re Pacific-Atlantic Trading Co., 27 F.3d 401, 403 (9th Cir.1994).
discussed Cited as authority (rule) In Re Liberty Outdoors, Inc.
Bankr. E.D. Mo. · 1997 · confidence medium
The Movants have relied on the 1984 amendments to Section 365(d) that were intended “to secure for lessors the full amount of rent due during the 60-day period while the trustee determines to accept or reject the lease, regardless of any benefit to the estate.” In re Pacific-Atlantic Trading Co., 27 F.3d 401, 405 (9th Cir.1994).
discussed Cited as authority (rule) Norritech v. Geonex Corp. (2×) also: Cited "see"
D. Maryland · 1997 · confidence medium
Cir.1995); Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 405 (9th Cir.1994); In re Twigland Fashions, 198 B.R. at 200 .
discussed Cited as authority (rule) Fifth Avenue Jewelers, Inc. v. Great East Mall, Inc. (In Re Fifth Avenue Jewelers, Inc.)
Bankr. W.D. Pa. · 1996 · confidence medium
Corp., 127 B.R. 14, 16 (Bankr.E.D.Va.1991); In re M.H.I., Inc., 61 B.R. 69, 70-71 (Bankr.D.Md.1986); In re Worths Stores Corp., 135 B.R. 112,116-17 (Bankr.E.D.Mo.1991)); In re Pacific-Atlantic Trading Co., 27 F.3d 401, 404-05 (9th Cir.1994) (expressly overruling the divergent authority within that circuit found in In re Orvco, 95 B.R. 724 (9th Cir. BAP1989)); In re Wingspread Corp., 116 B.R. 915, 925-26 (Bankr.S.D.N.Y.1990); In re Twigland Fashions, Inc., 198 B.R. 199, 200-01 (W.D.Tex.1996); In re Merry-Go-Round Enterprises, Inc., 1996 WL 69688 at 3 (Bankr.D.Md.1996).
discussed Cited as authority (rule) In Re Pudgie's Dev. of NY, Inc.
Bankr. S.D.N.Y. · 1996 · confidence medium
See also In re Child World, Inc., 161 B.R. 571, 576 (S.D.N.Y.1993); In re Pacific-Atlantic Trading Co., 27 F.3d 401, 405 (9th Cir.1994) (“We observe, however, that section 365(d)(3) expresses the intent of Congress to secure for lessors the full amount of rent due during the 60-day period while the trustee determines to accept or reject the lease, regardless of any benefit to the estate”); Paul Harris Stores, Inc. v. Mabel L.
cited Cited as authority (rule) Augusta Mall Partnership v. Twigland Fashions, Inc. (In Re Twigland Fashion, Inc.)
W.D. Tex. · 1996 · confidence medium
In re Pacific-Atlantic Trading Co., 27 F.3d 401, 404 (9th Cir.1994).
cited Cited as authority (rule) In Re Flugel
Bankr. S.D. Cal. · 1996 · confidence medium
In re Pacific-Atlantic Trading Co., 27 F.3d 401, 405 (9th Cir.1994).
discussed Cited as authority (rule) In Re Amber's Stores, Inc.
Bankr. N.D. Tex. · 1996 · confidence medium
Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 404-405 (9th Cir.1994) (The court in Mr. Gatti's used a similar reasoning to the Tammey Jewels court when it said that a lessor had other remedies that it should use if the debtor is not making post-petition rent payments). 19 . 95 B.R. at 728 . 20 .
cited Cited "see" In re Leather Factory Inc.
Bankr. C.D. Cal. · 2012 · signal: see · confidence high
See Pacific-Atlantic, 27 F.3d at 405 .
cited Cited "see" In re: Jim Slemons Hawaii, Inc.
9th Cir. BAP · 2011 · signal: see · confidence high
See Towers v. Chickering & Gregory (In re 7 Pacific-Atlantic Trading Co.), 27 F.3d 401 , 403–405 (9th Cir. 8 1994).
discussed Cited "see" In Re Clinton Care Center, LLC
Bankr. N.D. Miss. · 2010 · signal: see · confidence high
See In re Pacific-Atlantic Trading Co., 27 F.3d 401, 404-05 (9th Cir.1994); In re Kirsch, 242 B.R. 77, 79 (Bankr.M.D.Fla.1999); In re Florida Lifestyle Apparel, Inc., 221 B.R. 897, 901 (Bankr.M.D.Fla.1997).
cited Cited "see" CIT Communications Finance Corp. v. Midway Airlines Corp. (In Re Midway Airlines Corp.)
4th Cir. · 2005 · signal: see · confidence high
See Towers v. Chickering & Gregory, 27 F.3d 401, 404 (9th Cir.1994); In re E.
cited Cited "see" ca4 2005
4th Cir. · 2005 · signal: see · confidence high
See Towers v. Chickering & Gregory, 27 F.3d 401, 404 (9th Cir.1994); In re E.
discussed Cited "see" In Re Comdisco, Inc.
Bankr. N.D. Ill. · 2002 · signal: see · confidence high
See In re Pacific-Atlantic Trading Co., 27 F.3d 401, 404 (9th Cir,1994)(requirement that landlord prove reasonable value under § 503(b)(1) “is wholly inconsistent with the mandate of section 365(d)(3)” which “has already granted priority status to full payment of rent due....”); In re Pudgie’s Development of NY, Inc., 239 B.R. 688 (S.D.N.Y. 1999) (“the clause ‘notwithstanding section 503(b)(1)’ means ‘irrespective of whether payments required under the lease meet the usual requirements for administrative status, reasonableness and benefit to the estate, they are unconditiona…
discussed Cited "see" In Re CHS Electronics, Inc.
Bankr. S.D. Florida · 2001 · signal: see · confidence high
See In re Pacific-Atlantic Trading Co., 27 F.3d 401, 404-05 (9th Cir.1994); In re *342 Kirsch, 242 B.R. 77, 79 (Bankr.M.D.Fla. 1999); In re Florida Lifestyle Apparel, Inc., 221 B.R. 897, 901 (Bankr.M.D.Fla. 1997).
discussed Cited "see" In Re Geonex Corp.
Bankr. D. Md. · 2001 · signal: see · confidence high
See In re Pacific-Atlantic Trading Co., 27 F.3d 401 (9th Cir.1994) (trustee must pay rent, as an administrative expense, during the postpetition/pre-rejection period); Paul Harris Stores, Inc. v. Mabel L.
cited Cited "see" In Re: Koenig Sporting Goods, Inc., Debtor. Koenig Sporting Goods, Inc. v. Morse Road Company
6th Cir. · 2000 · signal: see · confidence high
See Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 405 (9th Cir.1994). 3 .
cited Cited "see" Koenig Sporting v. Morse Road
6th Cir. · 2000 · signal: see · confidence high
See Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 405 (9th Cir. 1994). (quoting Kelley v. E.I.
examined Cited "see" Omni Partners, L.P. v. Pudgie's Dev. of NY, Inc. (In Re Pudgie's Development of NY, Inc.) (3×)
S.D.N.Y. · 1999 · signal: see · confidence high
See In re Pacific-Atlantic Trading Co., 27 F.3d 401, 404 (9th Cir.1994); In re Microvideo Learning Systems, Inc., 232 B.R. 602, 607 (Bankr.S.D.N.Y.1999); In re Wingspread Corp., 116 B.R. 915, 925 (Bankr.S.D.N.Y.1990); but see Great Western Savings Bank v. Orvco Inc. (In re Orvco, Inc.), 95 B.R. 724, 728 (9th Cir. BAP 1989) (holding that a lessor must show reasonableness of the rent and the other factors under § 503(b)(1)(A)).
discussed Cited "see" In Re C.A.F. Bindery, Inc.
Bankr. S.D.N.Y. · 1996 · signal: see · confidence high
See Towers v. Checkering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 404 (9th Cir.1994); Child World, Inc. v. Campbell/Massachusetts Trust (In re Child World, Inc.), 161 B.R. 571, 575 (S.D.N.Y.1993); In re Financial News Network, Inc., 149 B.R. 348 , 352 n. 4 (Bankr.S.D.N.Y.1993); In re Wingspread Corp., 116 B.R. 915, 925 (Bankr.S.D.N.Y.1990).
discussed Cited "see" In Re New Almacs, Inc.
Bankr. N.D.N.Y. · 1996 · signal: see · confidence high
See Pacific-Atlantic Trading Co., supra, 27 F.3d at 405 ; see also In re Child World, Inc., 150 B.R. 328, 331 (Bankr.S.D.N.Y.), rev’d on other grounds 161 B.R. 571 (S.D.N.Y.1993) (Code § 365(d)(3) “does not require a determination of the reasonable value of the debtor’s post-petition use and occupancy and, instead, establishes the debt- or’s post-petition responsibility as comprising all the obligations under the lease until the lease is either assumed or rejected”.).
cited Cited "see" In Re Leisure Time Sports, Inc.
Bankr. S.D. Cal. · 1995 · signal: see · confidence high
See Pacific, 27 F.3d 401, 404 (“the statute has already granted priority payment status ...”).
cited Cited "see" In Re Lochmiller Industries, Inc.
Bankr. S.D. Cal. · 1995 · signal: see · confidence high
See In re Pacific-Atlantic Trading Co., 27 F.3d 401 (9th Cir.1994).
discussed Cited "see, e.g." Steepologie, LLC
Bankr. W.D. Tex. · 2024 · signal: see, e.g. · confidence medium
See, e.g., In re Pacific–Atlantic Trading Co., 27 F.3d 401, 405 (9th Cir. 1994) (“[S]ection 365(d)(3) expresses the intent of Congress to secure for lessors the full amount of rent due during the 60–day period while the trustee determines to accept or reject the lease, regardless of any benefit to the estate” (emphasis added)). 21 In re Tammey Jewels, Inc., 116 B.R. 292, 294 (Bankr.
cited Cited "see, e.g." In Re Eastern Agri-Systems, Inc.
Bankr. E.D.N.C. · 2000 · signal: see, e.g. · confidence low
See, e.g., Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401 (9th Cir.1994).
cited Cited "see, e.g." In Re Microvideo Learning Systems, Inc.
Bankr. S.D.N.Y. · 1999 · signal: see also · confidence medium
See also Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 404 (9th Cir.1994); TRST New York Inc. v. B.B.
discussed Cited "see, e.g." In Re Florida Lifestyle Apparel, Inc.
Bankr. M.D. Fla. · 1997 · signal: see, e.g. · confidence medium
See, e.g., Towers v. Chickering & Gregory (In re Pacific-Atlantic Trading Co.), 27 F.3d 401, 404-405 (9th Cir.1994); In re Compuadd Corporation, 166 B.R. 862, 865 (Bankr.W.D.Tx.1994); In re CSVA, Inc., 140 B.R. 116, 121 (Bankr.W.D.N.C.1992); See, 3 Collier on Bankruptcy, Paragraph 365.04[3][f][ii] at 365-39 (15 ed.1997).
In Re PACIFIC-ATLANTIC TRADING CO., a California Corporation, Debtor. Edward F. TOWERS, Trustee, Plaintiff-Appellant,
v.
CHICKERING & GREGORY, a Partnership, Defendant-Appellee
Dennis D. Davis, Goldberg, Stinnett & MacDonald, San Francisco, CA, for plaintiff-appellant., Jay W. Luther, Chickering & Gregory, San Francisco, CA, for defendant-appellee.
Lay, Hug, Schroeder.
Cited by 73 opinions  |  Published

Opinion by Judge HUG.

HUG, Circuit Judge:

In this case, we are asked to decide whether a trustee’s failure to pay the full amount of a debtor’s rent obligation, under a nonresidential real estate lease, for the period following the order for relief but prior to rejection of the lease, pursuant to 11 U.S.C. § 365(d)(3), gives rise to an administrative claim for the full amount of the rent accrued during that period, regardless of the actual value conferred by the lease upon the estate. We conclude that it does.

[*402] I.

FACTUAL AND PROCEDURAL BACKGROUND

In 1986, Chickering and Gregory (“Chick-ering”) entered into a sublease with Pacific-Atlantic Trading Corporation (“Pacific”). Under this lease, Pacific sublet approximately 26,645 square feet of office space on the 22nd and 23rd floors of Three Embarcadero Center, San Francisco, California. The term of this lease was July 1,1986 to February 28, 1992. Commencing August 1, 1986, the rent was $46,628.75 per month in advance,- along with any additional charges imposed upon Chickering by its lessor under the master lease. Pacific also leased a certain amount of storage space in the building for an additional monthly charge.

On September 15, 1988, an involuntary petition was filed against Pacific, pursuant to Chapter 7 of the United States Bankruptcy Code. On or about that time, Pacific ceased to conduct business. At the time the petition was filed, Pacific was $10,000 in arrears on its June rental payment, and totally in arrears on its payments for July, August, and September. By the time the petition was filed, Pacific owed $145,886.25 in unpaid rent.

On October 31, 1988, an order for relief was granted and Edward F. Towers was appointed trustee. Shortly after Towers’ appointment, he had a conversation with a Chickering partner, who indicated that Chickering expected the bankruptcy estate to pay rent. The trustee, however, made no payments on behalf of the estate. On November 10, the trustee’s counsel faxed a letter to Chickering advising it that Chickering was “under the misapprehension that the trustee is bound by the terms of [Chicker-ing’s] sublease to [Pacific] and/or that [Chick-ering] is entitled to some administrative priority for rents occurring post petition.” The letter continued:

Mr. Towers advises me that the lease has no value and that he does not intend to assume it. Thus, the lease will be rejected as a matter of law. The estate is not subject to the terms of the lease unless the trustee expressly assumes the lease. Furthermore, the estate is liable for an administrative expense only to the extent that the trustee uses the premises and receives benefit thereby.
The trustee is not using the premises and is promptly removing such odds and ends of furnishes as remain thereon. You should take such steps as are necessary to lease the premises. Anything we can do to assist you in gaining access and use of the premise will, of course, be done.

The bankruptcy court ruled that this letter did not constitute a formal rejection of the lease. The trustee does not challenge the validity of that order. The lease was deemed rejected 60 days after the date of the order for relief, pursuant to 11 U.S.C. § 365(d)(4). The furnishings belonging to the estate remained on the premises until November 25, 1988. Chickering did not recover the premises until after the lease was deemed rejected.

On October 11, 1989, Chickering filed a proof of claim for a total amount of $715,-760.15 plus “other amounts as allowed by law and not limited by 11 U.S.C. § 502(b)(7).” Chickering asserted that $93,257.50 of its claim was entitled to administrative priority. This amount represents the amount of rent accrued at the contract rate during the 60-day period prior to rejection of the lease by operation of law. The trustee filed a complaint challenging the claimed administrative priority. After a trial on stipulated facts, Bankruptcy Judge Thomas Carlson allowed Chickering an administrative claim for the full amount sought. The trustee appealed to the district court, -which affirmed in a brief dispositive order. This appeal followed.

II.

DISCUSSION

A bankruptcy trustee, subject to the court’s approval, may assume or reject exec-utory contracts and unexpired leases. 11 U.S.C. § 365(a) (1993). Where the debtor is a lessee under an unexpired lease of nonresidential real property, the trustee has 60 days from the date of the order for relief to decide whether to assume or reject the lease. 11 U.S.C. § 365(d)(4) (1993). If the trustee does not act within that time, the lease is[*403] deemed rejected as a matter of law. Id. During the period prior to assumption or rejection, the trustee must continue to “perform all the obligations of the debtor” under that lease. 11 U.S.C. § 365(d)(3) (1993). In this case, the trustee failed to assume or reject the lease within the 60-day period, and the lease was deemed rejected at the end of that period under section 365(d)(4). During the 60-day period prior to rejection, however, the trustee did not perform the debtor’s obligation to pay rent to Chiekering, pursuant to section 365(d)(3).

Chiekering sought an administrative claim for the full amount of the rent for the 60-day period, and the bankruptcy court entered an order allowing the claim. The court reasoned that because section 365(d)(3) created an immediate obligation to pay the full amount of the rent specified by the lease during the 60-day period prior to assumption or rejection, the trustee’s failure to pay the rent during that period gave rise to an administrative claim for that full amount.

The trustee argues that the district court erred by granting Chiekering administrative priority for the full amount of the rent. The trustee maintains that section 365(d)(3) is silent on the treatment of rent obligations, which are not performed in accordance with the statute’s mandate, and that administrative priority is governed by 11 U.S.C. §§ 503 and 507. Section 503(b)(1)(A) provides that after notice and a hearing, the court shall allow administrative expenses, but only to the extent they represent “the actual, necessary costs and expenses of preserving the estate....” 11 U.S.C. § 503(b)(1)(A) (1993); In re Dant & Russell, Inc., 853 F.2d 700, 707 (9th Cir.1988). An administrative rent claim under this standard is valued “under an objective worth standard that measures the fair and reasonable value of the lease.” Dant & Russell, 853 F.2d at 707. Section 507 provides that administrative expenses have first priority among unsecured claims. 11 U.S.C. § 507(a)(1) (1993). The trustee contends that the bankruptcy court should have determined the fair and reasonable value conferred by the lease upon the estate and granted administrative expense priority for only that amount.

Section 365(d)(3) was added to the Bankruptcy Code by the Bankruptcy Amendments and Federal Judgeship Act of 1984, Pub.L. No. 98-353, 98 Stat. 333 (1984). The statute provides in relevant part:

The trustee shall timely perform all the obligations of the debtor, except those specified in section 365(b)(2), arising from and after the order for relief under any unexpired lease of nonresidential real property, until such lease is assumed or rejected, notwithstanding section 503(b)(1) of this title. The court may extend, for cause, the time for performance of any such obligation that arises within 60 days after the date of the order for relief, but the time for performance shall not be extended beyond such 60-day period.

Prior to these amendments, the Code did not require the trustee to timely perform its obligations under a nonresidential lease or to provide a specific time for assumption or rejection of the lease. Lessors were entitled to an administrative priority for occupancy of the premises, but only to the extent allowed under section 503(b)(1), which was an amount equal to the reasonable value of the debtor’s actual use and occupation of the property. See, e.g., Dant & Russell, 853 F.2d at 707 (section 365(d)(3) not applicable to this case); In re Thompson, 788 F.2d 560, 562 (9th Cir.1986) (same). The pertinent part of the legislative history indicates that the statute was enacted to ameliorate the immediate financial burden borne by lessors of nonresidential property during the period in which trustees decided whether to assume a lease:

[The second] problem is that during the time the debtor has vacated space but has not yet decided whether to assume or reject the lease, the trustee has stopped making payments due under the lease. These payments include rent due the landlord and common area charges which are paid by all tenants according to the amount of space they lease. In this situation, the landlord is forced to provide current services — the use of its property, utilities, security, and other services — without current payment. No other creditor is put in this position....
[*404] The bill would lessen these problems by requiring the trustee to perform all the obligations of the debtor under a lease of nonresidential real property at the time required in the lease. This timely performance requirement will insure that debtor-tenants pay their rent, common area, and other charges on time pending the trustee’s assumption or rejection of the lease.

130 Cong.Rec. S8894-95 (daily ed. June 29, 1984) (remarks of Senator Hatch). In light of these objectives, and the specific language requiring a trustee to perform “all the obligations of the debtor ... notwithstanding section 503(b)(1),” courts have held section 365(d)(3) to authorize an administrative expense claim for rent at the full contract rate. See, e.g., In re Wingspread Corp., 116 B.R. 915, 925 (Bankr.S.D.N.Y.1990) (additional cases cited therein).

The trustee in this case relies principally upon In re Orvco, 95 B.R. 724 (9th Cir.BAP 1989), in which the Ninth Circuit Bankruptcy Appellate Panel diverged from these authorities. The BAP acknowledged in Orvco that section 365(d)(3) obligates a trustee “to timely perform the obligations of the debtor.” Id. at 726. The BAP observed, however, that the statute “ ‘does not expressly state what consequences follow from a violation of its terms.’ ” Id. at 727 (quoting In re Southwest Aircraft Services, Inc., 831 F.2d 848, 853 (9th Cir.1987), cert. denied, 487 U.S. 1206, 108 S.Ct. 2848, 101 L.Ed.2d 885 (1988)). The BAP further stated that “[njothing in the language of the section requires administrative or, worse yet, super-administrative status” for unpaid rent. Id. at 728. According to the BAP:

[T]he language of section 365(d)(3) “notwithstanding section 503(b)(1),” means that notwithstanding the administrative or nonadministrative status of a claim by a lessor, a bankruptcy court must order its payment pending assumption or rejection. It does not mean that the necessity for showing the reasonableness of the rent or any of the other factors considered under section 503(b)(1)(A) has been completely abrogated.

Id. at 728. Accordingly, the BAP concluded that where a lease of nonresidential property is deemed rejected, and the trustee has not paid rent during the period prior to rejection, “a lessor must establish its claim for administrative status under section 503(b)(1)(A).... ” Id. at 728.

The plain and unconditional language of the statute demands that a trustee promptly pay the full amount of rent due under a nonresidential real property lease during the 60-day period pending assumption or rejection. Under the view espoused in Orvco, a trustee can evade this responsibility merely by refusing to pay the debtor’s rent obligations prior to rejection of the lease. At that point, according to Orvco, a lessor may receive administrative priority for its unpaid rent, but only after it proves the reasonable value conferred upon the estate, under section 503(b)(1), and only to the extent of that value. All the while, the lessor would be forced to provide current services at its own expense. See Wingspread, 116 B.R. at 926. This result is wholly inconsistent with the mandate of section 365(d)(3). By providing for timely performance of all lease obligations, “notwithstanding section 503(b)(1),” the statute has already granted priority payment status to the full amount of rent due under nonresidential leases. The fact that a trustee does not comply with this directive before the lease is rejected cannot justify denying a lessor the priority treatment for the full amount which Congress has already bestowed upon it.

The Orvco decision relies, in part, upon the premise that a lessor is not without remedy because the lessor may move for a bankruptcy court order for the trustee to pay rent, and order the immediate surrender of the leased premises if the trustee fails to comply. Orvco, 95 B.R. at 727. One court has even suggested that the existence of these remedies makes it unfair to grant administrative priority to a lessor’s claim for the contractual rent during this period: “It would be truly an unfair proposition to permit the landlord to sit idly by and not seek either payment or recovery of the premises by relying on the fact that his contractual rent will be accorded administrative priority occupied and presented no benefit to the estate.” In re Tammey Jewels, Inc., 116 B.R. 292, 294 (Bankr.[*405] M.D.Fla.1990). We observe, however, that section 365(d)(3) expresses the intent of Congress to secure for lessors the full amount of rent due during the 60-day period while the trastee determines to accept or reject the lease, regardless of any benefit to the estate. The statute does not require the lessor to take any action.

The present case illustrates this point well. Here, the estate of a Chapter 7 debtor used the premises for little more than the storage of office furniture pending its sale to a liquidator. The trustee gave the lessor notice that it did not intend to assume the lease, but that notice did not constitute a formal rejection, and the estate continued to occupy the premises. While it appears that the lessor did not take legal steps to reclaim the premises prior to the lease’s deemed rejection, the statute does not place the burden on the lessor to do so. By requiring the trustee to timely pay the debtor’s rent, Congress clearly placed the burden on the trustee to promptly and properly reject the lease if it has no intention of assuming it and, in the meantime, to continue to perform the debt- or’s obligations under the lease.

The Oruco decision also relies on our decision in In re Southwest Aircraft Services, Inc., 831 F.2d at 853 for the proposition that section 365(d)(3) “does not expressly state what consequences follow from a violation of its terms.” See Orvco, 95 B.R. at 727. We find, however, that nothing in Southwest forecloses the conclusion we reach here. In Southwest, we were asked to decide whether a bankruptcy court erred by refusing to grant the motion of a debtor-in-possession to extend the 60-day assumption period under section 365(d)(4), where the debtor-in-possession had filed the motion before the end of the 60-day period, but the court did not consider it until after the 60-day period. Southwest, 831 F.2d at 848-49. In reversing and remanding, we rejected an argument made by the lessor that the lease had been automatically rejected by the debtor-in-possession’s failure to timely pay the rent during the 60-day period, pursuant to section 365(d)(3). See id. at 853-54. We found nothing in the language or legislative history of section 365(d)(3) mandating that a default in the timely failure to pay rent should auto-matieally result in rejection of the lease. Id. at 854. There was no question whether the debtor-in-possession was obligated to make the payment, in fact, the payment for the 60-day period was tendered at the time the motion for extension was made. The only issue was whether the default in the timeliness of the payment operated as an automatic rejection of the lease. We held it did not and remanded for the bankruptcy court to consider this default when it hears the motion for extension.

In contrast, in this case, the trustee defaulted in making the payments required by section 365(d)(3), which, in effect, would have operated as an administrative priority, and does not now intend to do so. He seeks to have that obligation reduced by the operation of section 503(b)(1). This cannot be squared with the specific statutory direction that the obligations under section 365(b)(3) exist “notwithstanding section 503(b)(1).” Adopting the trustee’s interpretation of the statute would mean that the trustee could benefit from disobeying the specific mandate of the statute, an untenable interpretation. We conclude that section 365(d)(3) authorizes administrative status for the unpaid rent for the 60-day period. The granting of administrative priority for this period is consistent with the intent of section 365(d)(3) and necessary to carry out its objectives.

Finally, we note that we have not been asked to decide, nor do we express any opinion, on whether amounts which a trustee fails to pay under section 365(d)(3) are entitled to “super-priority” status. The parties in this case do not dispute the fact that there are enough assets to pay all administrative claims, including that of Chickering.

III.

CONCLUSION

For the foregoing reasons, we conclude that the district court properly affirmed the bankruptcy court’s allowance of Chickering’s administrative expense claim for 60 days’ rent at the contract rate.

AFFIRMED.