(Appellee's Supp.App. at 65-66.) As a result, Colorado Interstate unconditionally agreed to pay all rents to CIT until the Master Lease expired in August of 1989.

In November of 1988, CMI ceased making payments to EDS under the Prime Lease. In January of 1989, CMI filed a petition under Chapter 11 of the Bankruptcy Code. CMI and EDS subsequently entered into an agreement approved by the bankruptcy court declaring the Prime Lease terminated as of November 8, 1988.^[1]

Because it was no longer receiving rent payments from CMI, EDS demanded the return of the equipment from Colorado Interstate and threatened a replevin action. In order to avoid being dispossessed of the equipment, Colorado Interstate began paying EDS the amounts owed by CMI under the Prime Lease. Colorado Interstate also continued making payments to CIT in accordance with the assignment.^[2]

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