In re Picnic N Chicken, Inc

In In re Picnic N Chicken, Inc. (Bankr. S.D.Cal. 1986) 58 B.R. 523, the debtor sought to reject a lease so it could cancel a lease-back provision and convey the property unencumbered. (In re Picnic ' N Chicken, Inc., supra, 58 B.R. at pp. 524-525.) The court construed the rejection to be a breach, rather than a termination, and observed California law permits a lessor to treat a breached lease as still in effect. ( Id. at p. 525, citing Civ. Code, 1951.4.)