This section contains the nature of the case and procedural background.

TSB, Inc. (Debtor) was a chapter 11 debtor in possession. On June 2, 2003, the Court converted the case to a chapter 7 liquidation. P was appointed the chapter 7 Trustee and immediately took possession of the business. Debtor's tavern was operated on the premises leased from D. D has filed an application for allowance of administrative expenses for rent it alleged accrued both in chapter 11 and chapter 7 periods. D sought $7,554.28 as a chapter 11 administrative expense and $17,769.52 as a chapter 7 expense, and it alleged ongoing charges of $4,442.38 per month until the leased premises were 'vacated.' By the time of the hearing, D had changed its assertions and claimed $1,709.60 as the unpaid chapter 11 administrative expense, and $15,844.50 as the chapter 7 administrative expense through September 19, 2003. D's claims are based on a written lease agreement dated February 27, 2002. Upon the June 2 conversion to chapter 7, P immediately re-keyed the locks and took possession of the premises. On June 4, P met with D, and with parties who were prospective purchasers of estate assets as well as prospective new tenants of the space. Somewhere between June 5 and June 10, D advised the P that it had decided to lease the property to City Grill. P removed some of the personal property but left the tables, chairs, and bar equipment on site. It was understood by P and D that City Grill would seek to purchase that property from the estate, and would enter into a lease with D. On June 16, P surrendered all keys to the premises, and City Grill soon commenced remodeling the property. That personal property of the estate was stored on the premises until September 19. No more than 10% of the premises were required to store such property.

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