Case Name: In re CARIBBEAN PETROLEUM CORP., et al., Debtors
Court: United States Bankruptcy Court for the District of Delaware
Jurisdiction: United States
Decision Date: 2010-12-02
Citations: 444 B.R. 263
Docket Number: No. 10-12553(KG)
Parties: In re CARIBBEAN PETROLEUM CORP., et al., Debtors.
Judges: 
Reporter: West's Bankruptcy Reporter
Volume: 444
Pages: 263–285

Head Matter:
In re CARIBBEAN PETROLEUM CORP., et al., Debtors.
No. 10-12553(KG).
United States Bankruptcy Court, D. Delaware.
Dec. 2, 2010.
Audrey J. Aden, Christopher Updike, George A. Davis, Zachary H. Smith, Cadwalader, Wickersham & Taft LLP, New York, NY, Jason M. Madron, Mark D. Collins, Travis A. McRoberts, Richards, Layton & Finger, P.A., Wilmington, DE, for Debtors.

Opinion:
MEMORANDUM OPINION
KEVIN GROSS, Bankruptcy Judge.
Introduction
Caribbean Petroleum Corporation ("CPC"), Caribbean Petroleum Refining L.P., and Gulf Petroleum Refining (Puerto Rico) (collectively, "Debtors") have moved (the "Rejection Motion") pursuant to 11 U.S.C. § 365 to reject any or all of its agreements with franchisees (the "Franchise Agreements") upon the contemplated sale of substantially all of Debtors' assets. The parties objecting to the Rejection Motion are franchisees (the "Franchisees") who operate 184 service stations through out Puerto Rico, of which 116 are located on real property owned by CPC and 68 are located on properties which CPC leases and then subleased to the operators. The Rejection Motion raises principally the impact, if any, of the Petroleum Marketing Practices Act (the "PMPA"), 15 U.S.C.S 2801, et seq., in a bankruptcy case. For the reasons which follow, the Court has entered an Order granting the Rejection Motion (D.I. 399).
Jurisdiction
The Court has jurisdiction over the pending matter pursuant to 28 U.S.C. § 157 and 1334. This is a core proceeding pursuant to 28 U.S.C. § 157(b) and venue is proper pursuant to 28 U.S.C. § 1408 and 1409.
Background
The Debtors filed their petitions for relief under chapter 11 of the Bankruptcy Code on August 12, 2010. Until October 23, 2009, when explosions destroyed some of their essential facilities in Puerto Rico, the Debtors operated integrated and interdependent businesses consisting of import, offloading, storage and distribution of petroleum products in Puerto Rico. CPC was a leading distributor in Puerto Rico of gasoline and other petroleum products through a network of Gulf-branded retail service stations (the "Service Stations"). The Franchisees operate the Service Stations.
The Debtors are seeking an early sale of substantially all of their assets, and filed a motion (the "Sale Motion") (D.I. 9) at the outset of the case to accomplish such a sale (the "Sale"). The Court approved the Debtors' proposed bidding procedures by Order, dated September 10, 2010 (the "Bidding Procedures Order") (D.I. 149), which provided for a stalking horse agreement, procedures for Debtors' assumption and assignment of executory contracts and unexpired leases in connection with the sale (the "Sale") and set dates for the Sale process. The dates are: December 10, 2010, for the submission of bids; December 13, 2010 (subsequently adjourned to December 16, 2010, by Notice of Adjournment of Auction, D.I. 400), for the auction; December 22, 2010, for the hearing on the Sale; and February 8, 2010, for the closing on the Sale.
In response to the Rejection Motion, the Franchisees promptly took action. They moved to withdraw the reference to the District Court, which motion remains pending, and sought a motion to stay the Court's consideration of the Rejection Motion. The Court denied the stay and thereafter conducted a hearing on the Rejection Motion on December 1, 2010.
The Debtors have filed the Rejection Motion in what they view as a necessity to improve the prospects of the Sale. Debtors have concluded that potential bidders may be discouraged from bidding, or will lower their bids because of unfavorable Franchise Agreements. In that event, Debtors will not be able to maximize their return in the Sale. The Franchisees have raised numerous objections which the Court will now address.
Due Process
Certain of the Franchisees have argued that the Rejection Motion deprived them of due process because of the brevity of notice. They also claim that the Rejection Motion and notice was in English only, without a version in Spanish, and that many of the Franchisees are Spanish speaking.
The Court does not find merit in the due process objection. First, the notice complied with the Court's Local Rules. Del. Bankr. L.R. 9006—1(c)(i) and (ii). See In re Old Carco LLC, 406 B.R. 180, 207 (Bankr.S.D.N.Y.2009) (notice which complies with procedural rules adequate).
Second, Puerto Rican law provides that Spanish and English are official languages of Puerto Rico. 1 L.P.R.A. § 59. See also Storage Tech. Corp. v. Comite Pro Rescate De La Salud (In re Storage Tech Corp.), 117 B.R. 610, 621 (Bankr.D.Colo.1990) (English and Spanish can be used indiscriminately and there was no evidence that the defendants did not comprehend English). Here, too, the Franchisees provided no evidence that the Franchisees do not speak English or were prejudiced by the English-only documents.
Ripeness
The Franchisees complain that the Rejection Motion is premature and will not be justiciable until a successful bidder emerges and designates the Franchise Agreements it wants Debtors to assume and assign, and those the Debtors will then reject. The Franchisees take exception to the "conditional" rejection concept.
The Third Circuit has addressed ripeness as a two factor test: (1) fitness of the issues for judicial determination, and (2) hardship to the parties of withholding the court's consideration. In re Rickel Home Centers, Inc., 209 F.3d 291, 307 (3d Cir.2000). See also Pic-A-State Pa., Inc. v. Reno, 76 F.3d 1294, 1298 (3d Cir.1996).
The first prong of the test, fitness for judicial decision, focuses on such factors as:
• are the issues legal versus factual,
• are events uncertain,
• is factual development necessary, and
• are the parties sufficiently adverse.
In re Powermate Holding Corp., 394 B.R. 765, 769 (Bankr.D.Del.2008). The Rejection Motion satisfies all of these factors. The applicability of the PMPA and the question of the nature of the Franchise Agreements are legal questions. The events are in the future but are not uncertain. The Sale is forthcoming and bidders will be influenced by the status of the Franchise Agreements. As the Court stated in Midway Games and applicable here:
Without the Court's determination of whether the automatic stay applies to the Officers, the Debtors' efforts to proceed further with their bankruptcy, with a plan of liquidation, as well as with negotiations with creditors, would be severely hindered.... Until the Debtors know if the stay applies to the Officers, the case will stall and further exhaust the assets of the estate. Most notably, any continued investigation, including the filing of IDOL's complaint against the Officers, would deplete the Debtors' most significant asset, the remaining proceeds from the Court approved asset sales.
In re Midway Games, Inc., 428 B.R. 327, 333 (Bankr.D.Del.2010).
The PMPA
Franchisees' most substantive argument is that the PMPA extinguishes Debtors' rights under the Bankruptcy Code to bring the Rejection Motion. The Court does not agree, and the case law is to the contrary and establishes that Bankruptcy Code Section 365 trumps the PMPA. In re Harrell Oil Co., Inc., 38 B.R. 280, 282. (Bankr. E.D.N.C. 1984) and In re Deppe, 110 B.R. 898, 905 (Bankr. D.Minn.1990). Particularly instructive is Carco, 406 B.R. at 205-06, in which the bankruptcy court held that Section 365 preempts state law (which the PMPA applies), which in Careo was designed to protect auto dealers from losing their franchises. The situation in Careo was very-close to the scenario the Court faces here. Bankrupt Chrysler was seeking to reject dealer franchises pursuant to Section 365 and in opposition the car dealers invoked the protective provisions of the Automobile Dealers Day in Court Act (the "ADDCA"). Like the PMPA, the ADDCA was designed to protect the franchisees. The ADDCA protects car dealership franchisees while the PMPA protects service station franchisees. The court in Careo made the following salient rulings:
More generally, a bankruptcy court recently held that "Congress enacted [§ ] 365 to provide debtors the authority to reject executory contracts. This authority preempts state law by virtue of the Supremacy Clause [and] the Bankruptcy Clause." In re City of Vallejo, 403 B.R. 72, 77 (Bankr.E.D.Cal.2009). "Where a state law 'unduly impede[s] the operation of federal bankruptcy policy, the state law [will] have to yield.' " Id. (quoting Perez, 402 U.S. at 649, 91 S.Ct. 1704, 29 L.Ed.2d 233). Specifically and by no means exclusively, statutory notice or waiting periods of, e.g., 60 or 90 days before termination clearly frustrate § 365's purpose to allow a debtor to reject a contract as soon as the debtor has the court's permission (and there is no waiting period under the Bankruptcy Rules). Buy-back requirements also frustrate § 365's purpose to free a debt- or of obligations once the debtor has rejected the contract. Good cause hearings frustrate § 365's purpose of giving a bankruptcy court the authority to determine whether a contract may be assumed or rejected. Strict limitations on grounds for nonperformance frustrate § 365's purpose of allowing a debtor to exercise its business judgment and reject contracts when the debtor determines rejection benefits the estate. So-called "blocking rights" which impose limitations on the power of automobile manufactures to relocate dealers or establish new dealerships or modify existing dealerships over a dealer's objection, frustrate § 365's purpose of giving a debtor the power to decide which contracts it will assume and assign or reject by allowing other dealers to restrict that power.
Carco, 406 B.R. at 205-206 (footnotes omitted). The Franchisees seek to impose similar provisions of the PMPA. The Court agrees with the Careo analysis, and holds that the rights afforded by Section 365 take precedence over the PMPA.
Business Judgment
The Franchisees challenge the standard of review applicable to the Rejection Motion. Debtors argue that their business judgment is the standard. Franchisees want the Court to employ the heightened standard apropos to matters involving the public interest.
Courts normally leave the decision to reject a contract to the debtor's sound business judgment. As Judge Walsh wrote in In re Trans World Airlines, Inc., 261 B.R. 103, 121 (Bankr.D.Del.2001), "A debtor's decision to reject an executory contract must be summarily affirmed unless it is the product of bad faith, or whim or caprice." See also Wheeling-Pittsburgh Steel Corp. v. W. Penn Power Co. (In re Wheeling-Pittsburgh Steel Corp.), 72 B.R. 845, 849-50 (Bankr.W.D.Pa.1987). However, in NLRB v. Bildisco and Bildisco, 465 U.S. 513, 528, 104 S.Ct. 1188, 79 L.Ed.2d 482 (1984), the Supreme Court found that certain contracts are in the "public interest" and therefore require heightened scrutiny. Courts interpreting Bildisco have consistently limited the heightened scrutiny to the protection of national public interest such as public safety, health or welfare. Carco, 406 B.R. at 189.
The PMPA does not express as its purpose a concern for any public policy interest. Its stated purpose is to protect franchisees from arbitrary or capricious termination of franchise agreements. In Careo, the court rejected the franchisees' insistence that the heightened standard should control the debtors' effort to reject auto dealership franchise agreements. The court found, as the Court does here with respect to the PMPA, that the ADDCA was not a Congressional effort to protect the national public interest. The Careo court found that "the public safety issues raised by the closing of dealerships do not create an imminent threat to health or safety." Carco, 406 B.R. at 190. The court further explained that:
This observation is consistent with the Pilgrim's Pride court's observation that it was "unwilling to hold that a higher standard for rejection must be met any time another federal law is implicated by the contract to be rejected. Not every act of Congress that may touch a debt- or's contract will require the court to consider public policy or other extraneous requirements of federal law in determining whether that contract may be rejected." Pilgrim's Pride, 403 B.R. at 424-25. Indeed, the Affected Dealers point to no language in the ADDCA requiring such considerations. Similarly, the Pilgrim's Pride court declined to apply the "public interest standard" in a case involving potential violations of the federal Packers and Stockyards Act ("PSA") in the contract rejection context because the court could not find language in the PSA requiring such public policy considerations. See Pilgrim's Pride, 403 B.R. at 424-25.
The Pilgrim's Pride court identified an additional scenario beyond inconsistency with a federal statute or encroachment on the turf of a federal regulator where it may be appropriate to apply a higher standard than business judgment to contract rejection: local laws designed to protect public health or safety. See Pilgrim's Pride, 403 B.R. at 424 & fn. 26 (citing Midlantic [National Bank v. New Jersey Department of Environmental Protection], 474 U.S. 494, 106 S.Ct. 755, 88 L.Ed.2d 859). Many Affected Dealers raised this very issue in the context of federal preemption, arguing that § 365 did not preempt the Dealer Statutes because they were enacted to protect public safety. While the Court continues discussion of this issue in its discussion of federal preemption infra, the Court notes that local laws designed to protect public health or safety, without imminent harm present, do not give rise to application of a heightened standard for contract rejection. Further, because the ADDCA does not give rise to such application of a "public interest standard", the Court applies a business judgment standard rather than a "public interest standard" here.
Id. at 190-191.
Applying the business judgment standard, the Court is convinced that Debtors have met their burden of showing that the Rejection Motion represents an informed decision, in good faith and in the honest belief that it is in the best interest of the Debtors. In re Integrated Resources, Inc., 147 B.R. 650, 656 (Bankr.S.D.N.Y.1992).
The unrefuted evidence before the Court supports the conclusion that the Debtors properly exercised their business judgment in pursuing the Rejection Motion. FTI Consulting, Inc. ("FTI"), Debt ors' crisis manager, and Roy Messing ("R. Messing"), Debtors' Restructuring Officer, found that potential bidders would be encouraged to make bids for the Sale were the Rejection Motion granted. See Declaration of Roy Messing, dated November 26, 2010 (D.I. 370) ("Messing Dec.") at ¶ 5-7. The Debtors' professionals have therefore advised Debtors that:
6. . Potential bidders have expressed that if the Rejection Motion is approved, and they receive greater clarity regarding their rights related to the treatment of the Franchise Agreements, they will be more likely to seriously consider submitting a bid that would include the real property at the Service Stations.
7. To that end, potential bidders are waiting for the adjudication of the Rejection Motion before submitting any bids.... These bidders, therefore, are looking for assurance that the Debtors will be able to reject these Franchise Agreements. The potential bidders have been watching the docket closely, and have seen the motion to withdraw the reference with respect to the Rejection Motion (see D.I. 322) and objections to the Rejection Motion (see D.I. 321, 335 and 337). Potential bidders have expressed concern that the Rejection Motion will not be decided before the deadline to submit bids, currently set for December 10, 2010. These bidders are worried that if an order approving the Rejection Motion is not entered before this deadline, they will not have certainty as to what their rights are related to the Franchise Agreements. Without certainty on this significant issue, potential bidders are hesitant to submit bids.
8. Accordingly, based on these recent conversations with potential bidders, we believe it would be extremely detrimental to the sale process if the Rejection Motion was not decided in the next week — in advance of the bid deadline set for December 10, 2010 — providing potential bidders with sufficient time to finalize their bids and decide how they would like to treat the Service Stations and Franchise Agreements....
The Debtors have acted on FTI's and R. Messing's advice in bringing the Rejection Motion and such action clearly represents the sound exercise of business judgment. The Court therefore finds that the Rejection Motion is in the best interests of the Debtors' estates.
The Integrated Franchise Agreements
The Franchisees have also objected to the Rejection Motion on the ground that Section 365(h) provides them with the right to continue to use the Service Stations after rejection.
Section 365(h)(ii) provides that if a debt- or rejects a lease of real property and the debtor is the lessor, then:
(ii) if the term of such lease has commenced, the lessee may retain its rights under such lease (including rights such as those relating to the amount and timing of payment of rent and other amounts payable by the lessee and any right of use, possession, quiet enjoyment, subletting, assignment, or hypothecation) that are in or appurtenant to the real property for the balance of the term of such lease and for any renewal or extension of such rights to the extent that such rights are enforceable under applicable nonbankruptcy law.
The Court agrees with Debtors that Section 365(h)(ii) does not apply to the Rejection Motion because the Franchise Agreements are not leases, but are licenses. Section 365(h) applies only to leases.
The difference between a lease and license is subtle but significant. A lease is a contract that provides exclusive possession of premises. A license, on the other hand, confers a privilege to occupy a premises. Jetz Service Co., Inc. v. AGS Meadow Oaks Assoc., 1993 WL 17201, *2 (S.D.N.Y. Jan. 14, 1993). The Franchise Agreements expressly provide Debtors with the right to repossess the Service Stations. Debtors also reserve the right to operate the Service Stations except for fuel sales. Debtors therefore have not granted exclusive use to Franchisees. The Franchise Agreements are thus licenses, not leases.
Furthermore, to adopt the Franchisees' argument, the Court would have to find that the single document comprising the Franchise Agreements contains two independent agreements, a "use" agreement and petroleum products "supply" agreement. The Court has no basis for segregating the Franchise Agreements into two, independent undertakings. The Franchise Agreements are integrated and nonsevera-ble. The case law plainly establishes that agreements such as the Franchise Agreements constitute a single agreement with an interrelated purpose. The Franchise Agreements are one agreement with mutually dependent purposes. See, e.g., Ashland Oil, Inc. v. Donahue, 159 W.Va. 463, 223 S.E.2d 433 (1976) (two agreements, one containing a lease and the other a sale and delivery agreement for gasoline, comprise a single agreement); In re Karfakis, 162 B.R. 719, 725 (Bankr.E.D.Pa.1993) (franchise agreement and lease agreement construed as a single agreement). The reasoning behind the Court's decision here and in the cited cases should be apparent. The lease and the supply provisions exist as one and would be economically unfeasible if separate. The Franchisees therefore do not retain any Section 365(h) rights in the Franchise Agreements.
CONCLUSION
The Court has granted the Rejection Motion for the foregoing reasons.
In re Caribbean Petroleum Corp., et al., Debtors.
ORDER AUTHORIZING CONDITIONAL REJECTION OF CERTAIN FRANCHISE AGREEMENTS
The Court will issue a written opinion addressing the parties written arguments and the arguments at the hearing on December 1, 2010. In the meantime, the parties, the Debtors in particular, and potential bidders for Debtor's assets, require certainty. Therefore, the Court orders that:
Upon the motion, dated November 9, 2010 (the "Motion"), of Caribbean Petroleum Corporation, Caribbean Petroleum Refining L.P., and Gulf Petroleum Refining (Puerto Rico) Corporation, as debtors and debtors in possession in the above-captioned chapter 11 cases (collectively, the "Debtors "), pursuant to sections 105(a) and 365 of title 11 of the United States Code (the "Bankruptcy Code "), and rules 6006 and 9014 of the Federal Rules of Bankruptcy Procedures (the "Bankruptcy Rules "), for entry of an order approving rejection of certain franchise agreements identified on Exhibit 1 hereto (the "Franchise Agreements "), all as more fully set forth in the Motion; and the Court having jurisdiction to consider the Motion and relief requested therein in accordance with 28 U.S.C. § 157 and 1334; and consideration of the Motion and the relief requested therein being a core proceeding pursuant to 28 U.S.C. § 157(b); and venue being proper before this Court pursuant to 28 U.S.C. § 1408 and 1409; and due and proper notice of the Motion having been provided to (i) the Office of the United States Trustee, (ii) the holders of the thirty largest unsecured claims against the Debtors on a consolidated basis, (iii) each of the Debtors' prepetition secured lenders, (iv) all counterparties to the Franchise Agreements, (v) the United States Department of Justice, (vi) the United States Environmental Protection Agency, and (vii) all parties having filed requests for notices in these chapter 11 cases, and it appearing that no other or further notice need be provided; and the Court having found and determined that the relief requested in the Motion is warranted and in the best interests of the Debtors, their estates and creditors, and all parties in interest, and that the legal and factual bases set forth in the Motion establish just cause for the relief granted herein; and after due deliberation and sufficient cause appearing therefor, it is hereby
ORDERED that the Motion is granted as provided herein; and it is further
ORDERED that the Debtors are authorized, but not required, to reject any or all of the Franchise Agreements, including any amendments or side letters with respect thereto, pursuant to section 365 of the Bankruptcy Code upon consummation of a sale of substantially all of the Debtors' assets that does not contemplate the assumption and assignment of such Franchise Agreements to the Successful Bidder; except that this Order shall not apply to Station No. 56 operated by San German Gulf, Inc. and Mark Terzikhan, whose objection to the Motion will be decided at a later date;
ORDERED that the Debtors shall identify which Franchise Agreements are to be rejected pursuant to the order approving the sale of substantially all of the Debtors' assets to the Successful Bidder;
ORDERED that the terms and provisions of the Petroleum Marketing Practices Act (the "BMP A") are inapplicable to the Debtors' rejection of the Franchise Agreements, including Station No. 56, and the Debtors are authorized to reject the Franchise Agreements notwithstanding any terms and provisions of the PMPA without any other or further notification of such rejection;
ORDERED that section 365(h)(1)(A) is not implicated by rejection of the Franchise Agreements and upon rejection of the Franchise Agreements, the non-Debtor counterparties thereto shall retain no right of possession or quiet enjoyment of the respective Service Station with respect to any lease provision of the Franchise Agreements;
ORDERED that nothing in this Order shall constitute any waiver of any claims or defenses by the Debtors that they have or may have against any counterparties to any Franchise Agreement, whether or not such claims or defenses arise under, are related to the rejection of, or are independent of the rejection of any Franchise Agreement; and it is further
ORDERED that the Debtors are authorized and empowered to take all actions necessary to implement the relief granted in this Order; and it is further
ORDERED that this Court shall retain jurisdiction to hear and determine all matters arising from or related to this Order.
EXHIBIT 1
Schedule of Franchise Agreements
Caribbean Petroleum Corporation Service Station Franchise Agreements
Station Number Debtor Counterparty Non-Debtor Counterparty and Address Agreement
1 Caribbean Petroleum Corporation Neguni Corp. (N. Capote) P.O. Box 8618 Bayamon, PR 00960 Lease and Supply Agreement
6 Caribbean Petroleum Corporation Wifki Awadallah Odeh Ave. Central Esq. San Patricio # 1652 Las Lomas Rio Piedras, PR 00921 Lease and Supply Agreement
7 Caribbean Petroleum Corporation Santa Paula Oil Corporation P.O. Box 8618 Bayamon, PR 00960-8035 Lease and Supply Agreement
10 Caribbean Petroleum Corporation Mahmoud All Shehadeh Calle 54 S.E. #1258 Utb. La Riviera San Juan, PR 00921 Lease and Supply Agreement
11 Caribbean Petroleum Corporation Laguna Mimoso, Luis E. Apartado 1116 Caguas, PR 00726 Lease and Supply Agreement
12 Caribbean Petroleum Corporation Zambrano Vera, Luis R. P.O. Box 810004 Carolina, PR 00981-0004 Lease and Supply Agreement
13 Caribbean Petroleum Corporation Gulf Del Norte Box 50367 Toa Baja, PR 009504)367 Trial Franchise
17 Caribbean Petroleum Corporation Adams Collazo, Johnny Apartado 9795 Caguas, PR 00726 Lease and Supply Agreement
18 Caribbean Petroleum Corporation H.M.F. Service Station P.O. Box 7103 Caguas, PR 00726-7103 Trial Franchise
19 Caribbean Petroleum Corporation Atman Abdelfatah Abuusha 1426 Luisa Capetillo Santiago Iglesias San Juan, PR 00921 Lease and Supply Agreement
23 Caribbean Petroleum Corporation Santa Paula Oil Corporation P.O. Box 8618 Bayamon, PR 00960-8035 Lease and Supply Agreement
24 Caribbean Petroleum Corporation Awadallah Odeh, Wifki Ave. Central Esq. San Patricio #1652 Las Lomas Rio Piedras, PR 00921 Lease and Supply Agreement
27 Caribbean Petroleum Corporation Awadallah Odeh, WifldAve. Centra] Esq. Sau Patricio#1652Las LomasRio Piedras, PR 00921 Lease and Supply Agreement
28 Caribbean Petroleum Corporation Leesan Investment Corp. Villas del Sol Calle Gibraltar 502 Carolina, PR 00985 Trial Franchise
33 Caribbean Petroleum Corporation Nieves Díaz, José A. Villas de Manatí Ave. Las Plantas Buzón 126 Manatí, PR 00674 Lease and Supply Agreement
34 Caribbean Petroleum Corporation Nieves Berrios, Carlos R. Bosque de las Flores 15 CalleTiagosan Bayamon, PR 00956-9222 Lease and Supply Agreement
37 Caribbean Petroleum Corporation Díaz Bou, Secundino Villas del Parana #24 Parana S-4 San Juan, PR 00926 Lease and Supply Agreement
38 Caribbean Petroleum Corporation HLM.F. Service Station P.O.Box 7103 Caguas, PR 00726-7103 Trial Franchise
39 Caribbean Petroleum Corporation Bezarez, Ernesto HC-40 Box 47926 San Lorenzo, PR 00754 Trial Franchise
40 Caribbean Petroleum Corporation Estoves Verdia, Jose F. 419 Ave. Kennedy San Juan, PR 00920-1617 Lease and Supply Agreement
41 Caribbean Petroleum Corporation Batiz Vergara, Hernán Monte Trujillo Calle 3-E-4 Trujillo Alto. PR 00976 Trial Franchise
43 Caribbean Petroleum Corporation Santa Paula Oil Corporation P.O. Box 8618 Bayamon, PR 00960-8035 Lease and Supply Agreement
47 Caribbean Petroleum Corporation Rullan Cordero, Osvaldo Box 1260 Utuado, PR 00641-1260 Lease and Supply Agreement
SO Caribbean Petroleum Corporation Wiflti Awadallah Odeh Ave. Central Esq. San Patricio# 1652 T m Lomas Rio Piedras. PR 00921 Lease and Supply Agreement
52 Caribbean Petroleum Corporation Vargas, Nelson A. Calle Azabache C-59 Mansiones de Santa Barbara Gurabo,PR 00778 Trial Franchise
55 Caribbean Petroleum Corporation Santa Paula Oil Corporation Lease and P.O. Box 8618 Supply Bayamon, PR 00960-8035 Agreement
56 Caribbean Petroleum Corporation San Germán, Inc. Lease and P.O. Box 356S Supply Vega Alta, PR 00692 Agreement
58 Caribbean Petroleum Corporation Plaza Interamericana Lease and PMB20I Supply Suite A9 B-5 Calle Agreement Taboouco Guaynabo, PR 00968-3003
59 Caribbean Petroleum Corporation Puerto Rico Consulting Lease and Group, Inc. Supply Calle Arpegio #18 Agreement Munoz Rivera Guaynabo, PR 00969
62 Caribbean Petroleum Corporation Yacoub Husni Lease and P.O.Box 1813 Supply Utuado, PR 00641 Agreement
68 Caribbean Petroleum Corporation Aguayo Poirata, Lease and P.O. Box 1373 Supply Hormigueros, PR 0660- Agreement 1373
69 Caribbean Petroleum Corporation Velazquez Colon, Antonio Lease and RR #6 Box 9496 Supply San Juan, PR 00926 Agreement
70 Caribbean Petroleum Corporation Ortiz Roura, Francisco Trial P.O. Box 2120 Franchise Orocovis, PR 00720
71 Caribbean Petroleum Corporation Guerra Pujáis, Rafael Lease and Ave. Jesus T. Pinero #1039 Supply San Juan, PR 00920 Agreement
73 Caribbean Petroleum Corporation Santa Paula Oil Corporation Lease and P.O. Box 8618 Supply Bayamon, PR 00960-8035 Agreement
76 Caribbean Petroleum Corporation Lleras Cruz, Antonio Lease and P.O. Box 1834 Supply Cayey, PR 00921 Agreement
82 Caribbean Petroleum Corporation Jibril Johar, Mohamed Lease and 1365 San Felix St. Supply Altamesa Dev Agreement San Juan, PR 00921
84 Caribbean Petroleum Corporation Núñez Garau, Max Lease and Cond. Galena I Supply Apt. 1204 Agreement Ave. Hostos A-201 Hato Rey, PR 00918
94 Caribbean Petroleum Corporation A tunar, Inc. Lease and Alturas del Remanso Supply M-15 Canada Agreement San Juan, PR 00926
93 Caribbean Petroleum Corporation Beltran, Juan E. Apartado 417 Lease and Supply Agreement
97 Caribbean Petroleum Corporation Rivera Lopez, Carlos A.Uib. Boneville TenaceB19 Calle 3Cagua$, PR 00725 Lease and Supply Agreement
98 Caribbean Petroleum Corporation Ldpez Méndez, Ariel Urb. Valle Alto 1009 Calle Picbachos Ponce, PR 00730-412$ Lease and Supply Agreement
101 Caribbean Petroleum Corporation Soto Alicea, Ignacio P.O. Box 477 Juana Diaz. PR 00795 Trial Franchise
102 Caribbean Petroleum Corporation Irizarry Caraballo, Jose Juan G.P.O. Box 943 Lares. PR 00669 Lease and Supply Agreement
103 Caribbean Petroleum Corporation Marin Ocasio, Fernando P.O. Box 1594 Toa Baja, PR 00951-1594 Lease and Supply Agreement
104 Caribbean Petroleum Corporation Negron, Rafael P.O.Box 1100 Barceloneta, PR 00617 Lease and Supply Agreement
105 Caribbean Petroleum Corporation Femandini Figueroa, Orlando P.O. Box 287 Castaner, PR 00631 Trial Franchise
106 ' Caribbean Petroleum Corporation Vargas Vargas, Edwin Urb. Monterreal No. A-3 AguadiUa, PR 00603 Lease and Supply Agreement
111 Caribbean Petroleum Corporation Figueroa, Luis Los Prados Dorado Norte 32 Dorado, PR 00646 Trial Franchise
112 Caribbean Petroleum Corporation El Mesdn De Felipe, Inc. Calle Manuel Pinallo Esquina Calle Aduana Mayaguez, PR 00969 Lease
112 Caribbean Petroleum Corporation Cuerea Pujáis, Alfredo Parfcville G-27 McKinley Guaynabo, PR 00969 Lease and Suppty Agreement
113 Caribbean Petroleum Corporation Awadallah Odeh, Wiffci Ave. Central Esq. San Patricio #1652 Las Lomas R» Piedras. PR 00921 Lease and Supply Agreement
116 Caribbean Petroleum Corporation Barreras Diaz, Philip DBA Pbd Management Urb. Las Cumbres 497 Ave. Emiliano Pol PMB624 San Juan, PR 00926-5636 Lease and Supply Agreement
118 Caribbean Petroleum Corporation Velazquez Colon, Antonio RR #6 Box 9496 San Juan, PR 00926 Lease and Supply Agreement
119 Caribbean Petroleum Corporation Guerra Cinco, Inc. c/o Guerra Pujáis, RafaelAve. Jesus T. Pinero «039San Juan, PR 00920 Lease and Supply Agreement
122 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburuon 335 Dorado, PR 00646 Lease and Supply Agreement
123 Caribbean Petroleum Corporation Soto Girau, Efrafa P.O.Box 1212 Hormigueros, PR 00660 Lease and Supply Agreement
129 Caribbean Petroleum Corporation Bonilla Traverso, Waldemar HC 5 Box 92550 Arecibo, PR 00612 Lease and Supply Agreement
132 Caribbean Petroleum Corporation Ocasio Rosa, Johan HC-01 Box 6850 Las Piedras, PR 00771 Trial Franchise
133 Caribbean Petroleum Corporation Cato Alvarez, Margarita Primavera Encantada 43 Paseo Las Flores Trujillo Alto, PR 00976 Lease and Supply Agreement
133 Caribbean Petroleum Corporation Caribbean Restaurants LLC P.O.Box 366999 San Juan, PR 00936-6999 Lease
135 Caribbean Petroleum Corporation Santos Rivera, Antonio Estancias Reales 18 Calle Duque de Kent Guaynabo, PR 00969-5322 Lease and Supply Agreement
138 Caribbean Petroleum Corporation Hernández Jorge, José A. 1937 Melcjor Maldonado Fair View Rio Piedras, PR 00926 Lease and Supply Agreement
139 Caribbean Petroleum Corporation Santa Paula OH Corporation P.O.Box 8618 Bayamon, PR 00960-8035 Lease and Supply Agreement
140 Caribbean Petroleum Corporation Jota Corp. Urb. San Martin #1128 Ave 65 Infantería San Juan, PR 00924 Lease and Supply Agreement
141 Caribbean Petroleum Coiporation Berrios Rivera, Gilberto HC-03 Box 12799 Corozal, PR 00783 Lease and Supply Agreement
143 Caribbean Petroleum Corporation Wifld Awadallah Odeh Ave. Central Esq. San Patricio# 1652 Las Lomas Rio Piedras, PR 00921 Lease and Supply Agreement
145 Caribbean Petroleum Corporation Maracaibo Petroleum Corp.Ave. EsmeraldaCondominio Plaza EsmeraldaApt 215Guaynabo, PR 00969 Lease and Supply Agreement
146 Caribbean Petroleum Corporation Figueroa, Luis Los Prados Dorado Norte 32 Dorado, PR 00646 Lease and Supply Agreement
147 Caribbean Petroleum Corporation Colon, Evangelito P.O.Box 8002 Caguas, PR 00726 Lease and Supply Agreement
148 Caribbean Petroleum Corporation Gulf Plaza, luc. P.O. Box 270004 San Juan, PR 00927-0004 Lease and Supply Agreement
150 Caribbean Petroleum Corporation Alonso Ricardo D/B/A Puerto Rico Consulting Calle Arpegio #18 Munoz Rivera Guaynabo, PR 00969 Lease and Supply Agreement
154 Caribbean Petroleum Corporation Figueroa Colón, Eddie P.O.Box 1165 Jayuya, PR 00664 Lease and Supply Agreement
155 Caribbean Petroleum Corporation Collazo Del Valle, Pedro P.O.Box 208 Caguas, PR 00726-0208 Lease and Supply Agreement
156 Caribbean Petroleum Corporation Márquez Gómez. Ismael P.O.Box 113 Rio Grande, PR 00745 Trial Franchise
159 Caribbean Petroleum Corporation Guerra Cinco, Inc. Ave. Jesus T. Pinero #1039 San Juan, PR 00920 Lease and Supply Agreement
160 Caribbean Petroleum Coiporation Visbal Castro, Elving O. P.O.Box 3029 Aguadilla, PR 00604 Trial Franchise
162 Caribbean Petroleum Corporation Peña Rodriguez, Cristobal P.O. Box 908 San Lorenzo, PR 00754 Lease and Supply Agreement
163 Caribbean Petroleum Corporation Awadallah Odeh, Wifld Ave. Central Esq. San Patricio #1652 Las Lomas Rio Piedras, PR 00921 Lease and Supply Agreement
165 Caribbean Petroleum Corporation Hamad Corporation Lease and Calle Dr. Cueto 19 Supply Untado, PR 00641 Agreement
167 Caribbean Petroleum Corporation Vélez Rebollar, Maritza Lease and HC-03 Box 12622 Supply Juana Diaz, PR 00795 Agreement
168 Caribbean Petroleum Corporation Cruz Ocasio, Carlos Lease and P.O. Box 50415 Supply Toa Baja, PR 009504)415 Agreement
170 Caribbean Petroleum Corporation Ortiz, ZulmaP.O. Box Trial l994Coamo, PR 00769 Franchise
172 Caribbean Petroleum Corporation Loperena, Antonio Lease and Urb. Las Palmas Supply Calle Corozo No. 211 Agreement Moca, PR 00676
173 Caribbean Petroleum Corporation Tavarez Santana, Diego Trial P.O. Box 810378 Franchise Carolina, PR 00981
174 Caribbean Petroleum Corporation Mohamed Saber Odeh Lease and K-13 Kefferson St. Supply Parfcville Agreement Guaynabo, PR 00969
176 Caribbean Petroleum Corporation Crespo Ortiz, Luis Carlos Lease and P.O. Box 1548 Supply Guaynabo, PR 00970*1548 Agreement
177 Caribbean Petroleum Corporation Awadallah Odeh, Wiflá Lease and Ave. Central Esq. San Supply Patricio #1652 Agreement Las Lomas Rio Piedras, PR 00921
178 Caribbean Petroleum Corporation León, Antonio lease and 1155 Ave. Hostos Supply Ponce, PR 00717-0931 Agreement
179 Caribbean Petroleum Corporation Barreras Díaz, Philip DBA Lease and Pbd Management Supply Urb. Las Cumbres Agreement 497 Ave. Emiliano Pol PMB624 San Juan. PR 00926-5636
180 Caribbean Petroleum Corporation Cruz Ocasio, Carlos Lease and P.O. Box 50415 Supply Toa Baja, PR 00950-0415 Agreement
184 Caribbean Petroleum Corporation Abraham, Sami Lease and Paseo Las Olas Supply Calle Tiburuon 335 Agreement Dorado, PR 00646
165 Caribbean Petroleum Corporation Santiago Rivera, Féliz Lease and Box 206 Supply ViUalba. PR 00766 Agreement
188 Caribbean Petroleum Corporation Vega Rosario, Heriberto Urb. Los Angeles 2330 Calle Celestial Carolina, PR 00979-1653 Trial Franchise
191 Caribbean Petroleum Corporation Fuentes Service Station PMB Box 342 425 Carr. 693 Suite 1 Dorado, PR 00646 Trial Franchise
193 Caribbean Petroleum Corporation Yacoub HusniP.O. Box 18!3Utuado, PR 00641 Lease and Supply Agreement
194 Caribbean Petroleum Corporation Roca Esteves, Juan Jose Ave. Miramar No. 650 Arecibo, PR 00612 Lease and Supply Agreement
195 Caribbean Petroleum Corporation Cabrera & Rosado P.O. Box 1055 Guayama, PR 00784 Trial Franchise
196 Caribbean Petroleum Corporation Cotto, Miguel HC 7 Box 34328 Caguas, PR 00727-9420 Trial Franchise
198 Caribbean Petroleum Corporation Jibril Jobar, Mohamed 1365 San Felix St Altamesa Dev San Juan, PR 00921 Lease and Supply Agreement
199 Caribbean Petroleum Corporation Santa Paula Oil Corporation P.O. Box 8618 Bayamon, PR 00960-8035 Lease and Supply Agreement
300 Caribbean Petroleum Corporation ADJACorp. do Garage Bonin Corp. P.O. Box 242 Barceloneta, PR 00617 Lease-Sub Lease
304 Caribbean Petroleum Corporation Iván Sierra Cintrdn Laderas de Palma Real Cervantes W-7-32 San Juan, PR 00926 Lease-Sub Lease
321 Caribbean Petroleum Corporation Miguel Cotto - Caguas HC 7 Box 34328 Caguas, PR 00725-9420 Lease-Sub Lease
327 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburuon 335 Dorado, PR 00646 Lease-Sub Lease
342 Caribbean Petroleum Corporation Russe, Pedro R. HC-02 Box 6035 Sector La Linea MoroWs, PR 00717-9722 Lease-Sub Lease
345 Caribbean Petroleum Corporation Armando Santiago Urb. Los Flamboyanes # 24 Aguada, PR 00602 Lease-Sub Lease
361 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburuon 335 Dorado, PR 00646 Lease-Sub Lease
366 Caribbean Petroleum Corporation Alomac Properties And Realty, Inc. HC 7 Box 34328 Caguas, PR 00725-9420 Lease-Sub Lease
371 Caribbean Petroleum Corporation Cuevas González, NoelP.O. Box 763Camuy, PR 00627 Lease-Sub Lease
376 Caribbean Petroleum Corporation Rullán Bayron, Alberto Garza No. 5 Adjuntas, PR 00610 Lease-Sub Lease
402 Caribbean Petroleum Corporation Coop. Gasolinera De Hato Tejas P.O. Box 282 Bayamon, PR 00960 Lease-Sub Lease
404 Caribbean Petroleum Corporation Marte. Ter Horst P.O. Box 8490 Humacao.PR 00792 Lease-Sub Lease
406 Caribbean Petroleum Corporation Yacoub Husni P.O.Box 1813 Utuado,PR 00641 Lease-Sub Lease
407 Caribbean Petroleum Corporation Hamad Corporation Calle Dr. Cueto 19 Utuado, PR 00641 Lease-Sub Lease
414 Caribbean Petroleum Corporation Francisco Ortiz Roura P.O. Box 1502 Orocovis, PR 00720 Lease-Sub Lease
415 Caribbean Petroleum Corporation Kata, Irte. Cond. San Alberto # 605 Ave. Condado Suite 721 San Joan, PR 00983 Lease-Sub Lease
424 Caribbean Petroleum Corporation Damian Irizarry P.O.Box 12S Lajas, PR 00667 Lease-Sub Lease
425 Caribbean Petroleum Corporation Antonio Torres P.O. Box 1497 Rio Grande, PR 00745 Lease-Sub Lease
427 Caribbean Petroleum Corporation Villa Tumbo Service Station, Inc. HC 7 Box 34328 Caguas, PR 00727-9420 Lease-Sub Lease
428 Caribbean Petroleum Corporation Hato Gas Service Station, Inc. HC 7 Box 34328 Caguas, PR 00725-9420 Lease-Sub Lease
431 Caribbean Petroleum Corporation Wifki Awadallah Ave. Centra] Esq. San Patricio# 1625 Las Lomas Rio Piedras, PR 00921 Lease-Sub Lease
432 Caribbean Petroleum Corporation Rafael losé Segarra C. Gras 222 Parque de Isla Verde Carolina, PR 00979-1381 Lease-Sub Lease
43S Caribbean Petroleum Corporation Nieves Ocasio, Juan Ramon HC-02 Box 10094 QuebradiUas, PR 00678 Lease-Sub Lease
440 Caribbean Petroleum Corporation Vega Baja Gulf, Jnc.P.O. Box 2!31Vega Baja, PR 00694-2131 Lease-Sub Lease
441 Caribbean Petroleum Corporation Mother & Son Adm. Services HC-40 Box 47926 San Lorenzo, PR 00754 Lease-Sub Lease
445 Caribbean Petroleum Corporation Tones Droz, David P.O.Box 373 Las Marias, PR 00670 Lease-Sub Lease
446 Caribbean Petroleum Corporation Jose Rivera Tones HC-03 Box 15623 Bo. Jacaguas Juana Diaz, PR 00795-9523 Lease-Sub Lease
449 Caribbean Petroleum Corporation Miguel Cotto • Caguas HC 7 Box 34328 Caguas, PR 00725-9420 Lease-Sub Lease
452 Caribbean Petroleum Corporation Neroby Developers Corp. Box 50367 Toa Baja, PR 00950-0367 Lease-Sub Lease
453 Caribbean Petroleum Corporation Mahmoud Ali Shehadeh P.O.Box 3313 Vega Alta, PR 00692 Lease-Sub Lease
459 Caribbean Petroleum Corporation Marina Puerto Chico P.O.Box 488 Puerto Real Fajardo, PR 007404)488 Supply
463 Caribbean Petroleum Corporation Cruz Rivera, Jose A. Urb. Villanueva CaHe 4 Esq. 5 Q-9 Caguas, HI 00725 Lease-Sub Lease
464 Caribbean Petroleum Corporation Coop. Gasolinera De Dorado • Dorado P.O.Box 407 Dorado, PR 00646-0407 Lease-Sub Lease
467 Caribbean Petroleum Corporation Demis Adrian Castro Rivera HC-Oi Box 8139 Loiza, PR 00772 Lease-Sub Lease
468 Caribbean Petroleum Corporation Figueroa Baez, Henry Lease-Sub Charles - Ponce Lease P.O. Box 2000 PMB IS Mercedita, PR 00715
469 Caribbean Petroleum Corporation Santa Paula Oil Corporation Lease-Sub P.O. Box 8618 Lease Bayamon, PR 00960-8035
472 Caribbean Petroleum Corporation Abraham Petroteum Lease-Sub Paseo Las Olas Lease Calle Tiburuon 335 Dorado, PR 00646
473 Caribbean Petroleum Corporation King Oil Coip.P.O. Box Lease-Sub 69001Suite 1 ISHalilio, PR Lease 00659-6901
474 Caribbean Petroleum Corporation AY.N. Investment Lease-Sub P.O. Box 69001 Lease Suite 118 Hatillo, PR 00659-6901
478 Caribbean Petroleum Corporation Luis Petrovich Clavel) Lease-Sub Box 10698 Lease Ponce, PR 00732
479 Caribbean Petroleum Corporation Al Amana Cotp, Bayamon Lease-Sub P.O. Box 3313 Lease Vega Alta, PR 00692
482 Caribbean Petroleum Corporation Rodriguez Triff, Daniel Lease-Sub Pio Baroja 315 Lease El Señorial San Juan, PR 00926
483 Caribbean Petroleum Corporation Rios Ruiz, Luis Angel Lease-Sub HC-02 Box 6026 Lease Adjuntas, PR 00601-9601
485 Caribbean Petroleum Corporation Abraham Petroleum Lease-Sub Paseo Las Olas Lease Calle Tiburuon 335 Dorado, PR 00646
487 Caribbean Petroleum Corporation Ramón L. Nieves Lease-Sub HC-01 Box 3721 Lease Coroza], PR 00643
489 Caribbean Petroleum Corporation Cama Group, Inc. Lease-Sub P.O. Box 8631 Lease Bayamon, PR 00960-8631
497 Caribbean Petroleum Corporation Luis R. Coss Rivera Lease-Sub HC-70 Box 25999 Lease San Lorenzo, PR 007S4
499 Caribbean Petroleum Corporation Deleon Bello, Pedro J. - Lease-Sub Manat! Lease P.O. Box 1608 Vega Baja, PR 00694-1608
600 Caribbean Petroleum Corporation Glorisan, Inc. - Ponce Urb. Caminos del Sur Calle Pelicano #407 Ponce, PR 00731 Lease-Sub Lease
730 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburaon 335 Dorado, PR 00646 Supply
732 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburaon 335 Dorado. PR 00646 Lease-Sub Lease
733 Caribbean Petroleum Corporation Abraham PetroleumPaseo Las OlasCalle Tiburaon 335Dorado, PR 00646 Supply
734 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburaon 335 Dorado, PR 00646 Supply
735 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburaon 335 Dorado, PR 00646 Supply
736 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburaon 335 Dorado, PR 00646 Lease-Sub Lease
738 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburaon 335 Dorado, PR 00646 Supply
743 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburaon 335 Dorado, PR 00646 Supply
746 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburaon 335 Dorado, PR 00646 Supply
748 Caribbean Petroleum Corporation Abraham Petroleum Paseo Las Olas Calle Tiburaon 335 Dorado, PR 00646 Supply
801 Caribbean Petroleum Corporation Morales, William Box 595 Guanica, PR 00653 Lease-Sub Lease
802 Caribbean Petroleum Corporation Wifki Awadallah Ave. Central Esq. San Patricio# 1625 Las Lomas Rio Piedras, PR 00921 Lease-Sub Lease
803 Caribbean Petroleum Corporation Victor M. Gonzalez Calle Oviero Bloque 7 #3 Utb. Toni mar Guavnabo, PR 00653 Lease-Sub Lease
804 Caribbean Petroleum Corporation V&F Administration Group, Inc. 68 Palmeras Reales Humacao, PR 00791 Supply
805 Caribbean Petroleum Corporation Anastasio Soto D/B/A Asoc. De Pescadores de Culebra P.O. Box 240 Culebra, PR 00775 Lease-Sub Lease
Corporation Vilmarie Zayas CabezaP.O. Box 656Punta SantiagoHumacao, PR 00741 Lease-Sub Lease
905 Caribbean Petroleum Corporation Caez Rodriguez, Carlos Villa Carolina Calle 603 Bloque 222 #23 Carolina, PR 00985 Lease-Sub Lease
. The exigencies of the situation required the Court to enter the Order with the Opinion to follow.
. Puerto Rican law is in accord. Civil Code of Puerto Rico, Art. 1433, 31 L.P.R.A. 4012.
. The Court has not ruled on the objection of San German Gulf, Inc. and Mark Terzikhan. At the hearing on the Rejection Motion, they raised potential factual issues relating to the Applicability of Section 365(h) to the Franchise Agreement for their Service Station. The Court will consider their objection at the later date.
. The Debtors in these chapter 11 cases (along with the last four digits of each Debt- or's federal tax identification number) are: Caribbean Petroleum Corporation (7836), Caribbean Petroleum Refining L.P. (1421), and Gulf Petroleum Refining (Puerto Rico) Corporation (1417). The service address for all Debtors is: PO Box 361988, San Juan, Puerto Rico 00936.
. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Motion.