When a lease is not a lease

Sometimes a lease is just a lease.  And sometimes it’s cover for something else — like a financing transaction.  That’s one of the issues that’s percolating in the United Airlines bankruptcy proceeding, and there’s a goodly chunk of change hanging on the legal arguments.  At issue is some $500 million in municipal bonds used at four airports.  So far the bankruptcy court and the district court have split over whether the transactions at issue are leases or not.  Via the ABA’s eSource electronic newsletter, Todd Gale of Kirkland & Ellis LLP outlines the issues.