Property lessor entered into a prepetition stipulation with debtor in settlement of a state court lawsuit. After filing his chapter 11 petition, debtor moved to assume his lease agreement with lessor, which the court approved, finding that lessor was adequately protected, and ordered debtor to pay lessor the amount determined to be in default. Debtor paid the default amount to lessor. Lessor subsequently requested that the prepetition stipulation be treated as valid and binding or, in the alternative, that debtor be compelled to assume or reject it as an executory contract. Thereafter, debtor filed an objection to lessor's claim. Pursuant to the parties' agreement, the court entered an order finding that the prepetition stipulation was a valid and binding executory contract, and directing debtor to either assume or reject it within 30 days. Debtor untimely filed a rejection of the stipulation/executory contract. At a hearing on debtor's objection to lessor's claim, lessor did not testify and debtor testified that the amounts lessor claimed were unfounded. Shortly thereafter, lessor filed a motion to set aside debtor's rejection of the stipulation. The court considered the pending issues between the parties, concluding that lessor's motion to set aside debtor's rejection should be denied, and that debtor's rejection of the executory contract was justified under any standard applicable to such decisions. Finally, the court found that debtor had sufficiently rebutted lessor's proof of claim, and that lessor's failure to offer any evidence in support of its claim, beyond the proof of claim itself, left the court with no evidence upon which to allow the claim. Lessor's claim was denied, and debtor's rejection of the executory stipulation agreement was approved.