Complex Chapter 11 Cases: General
U.S. Bankruptcy Court for the Eastern District of Pennsylvania
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(a) Complex Chapter 11 Case. A complex chapter 11 case is a chapter 11 case in which §101(51D), (1) the total debt in the case is more than 3 times the dollar amount stated in (2) the debtor’s debt or equity securities are publicly traded, or (3) there are 100 or more parties in interest in the case. -1- (b) Statement of Qualification for Complex Chapter 11 Case Status: Administration. A chapter 11 debtor may file a Statement of Qualification for Complex Chapter 11 Case Status, substantially in the form of L.B.F. 1002-2A that sets forth the reasons why the debtor’s chapter 11 case qualifies under subdivision (a) as a complex chapter 11 case. If a Statement of Qualification is filed, the case shall be administered as a complex chapter 11 case, unless the court orders otherwise.
(c) Expedited Hearing. In a case being administered as a complex chapter 11 case, if the debtor files a motion for the scheduling of an Expedited Hearing (“Expedited Hearing”) within 10 days of filing the case, the assigned judge shall use the judge’s best efforts to schedule an Expedited Hearing as soon as appropriate, but not more than 3 business days after the filing of the motion, unless the debtor requests a later date. If the assigned judge is unavailable, the Emergency Judge serving under L.B.R. 5001-1(a) shall use the judge’s best efforts to arrange for an Expedited Hearing within the 3 day period. The courtroom deputy shall promptly inform the debtor of the date and time of the Expedited Hearing and which motions and applications will be heard (“the Expedited Hearing Agenda”).
(d) Notice of Expedited Hearing: Service of Motions and Applications. (1) Service. The debtor shall serve a Notice of Expedited Hearing substantially in the form of L.B.F. 1002-2B, copies of the motions and applications that will be heard at the Expedited Hearing and the proposed order that accompanies each motion and application on the following parties, or, if represented, their counsel: (A) the United States Trustee; (B) counsel for any committee or, if the committee is not represented by counsel, the committee members; or if a committee has not been appointed, the 20 largest unsecured creditors of the debtor on the list filed under Fed. R. Bankr. P. 1007(d); (C) any prepetition committee of unsecured creditors; (D) the Internal Revenue Service at the address shown on the list maintained by the Clerk under Fed. R. Bankr. P. 5003(e); (E) any federal, state, or local governmental taxing authority to which the debtor is subject; (F) any agency that has administrative or regulatory jurisdiction over the debtor; and (G) any entity whose interest would be directly, materially, and adversely affected if the relief requested in one or more of the motions were granted and whose interests are not adequately represented by persons on whom service is otherwise required. -2- (2) Deadline for Service. The debtor shall serve the Notice of Expedited Hearing by hand delivery, overnight delivery, facsimile or electronic mail, or as otherwise directed by the court on the day the debtor is notified by the court of the date of the Expedited Hearing, if feasible.
If service is not made on the day the debtor is notified by the court of the date of the Expedited Hearing, service shall be made no later than the next day. (3) Certification of Service. The debtor shall file a certification of service as required by L.B.R. 9014-4 before the Expedited Hearing. (4) Adequacy of Service.
If the court determines that the service completed in advance of the Expedited Hearing is inadequate for any motion or application on the Expedited Hearing Agenda, the court may deny some or all of the relief requested or continue the hearing. (e) Advance Notice to and Service on the United States Trustee. (1) Notice to United States Trustee. Counsel for the debtor, with or without naming the debtor or including information that identifies the debtor, shall, if feasible, advise the United States Trustee of a debtor’s intent to file a complex chapter 11 case and of the motions and applications the debtor intends to request be heard at an Expedited Hearing.
Counsel shall give this notice to the United States Trustee as soon as practical, which ordinarily should be at least 48 hours before the chapter 11 case is filed. (2) Service on United States Trustee. The debtor shall deliver by hand or electronic mail, if feasible, the applications and motions (in substantially final form) that the debtor intends to request be heard at an Expedited Hearing to the United States Trustee at least 24 hours before the filing of the chapter 11 case. (f) Notice of Entry of Orders.
On the day the debtor is notified of the entry of the order disposing of a matter heard at the Expedited Hearing, the debtor, if feasible, shall serve a copy of the order on the parties required to be served under subdivision (d)(1). If service is not made on the day the debtor is notified of entry of the order, service shall be made the next day. (g) Objection to Statement of Qualification: Response to Motion or Application. An objection to the debtor’s Statement of Qualification and an objection or response to an application or motion scheduled to be heard at an Expedited Hearing may be filed before the Expedited Hearing or made orally at the Expedited Hearing. -3- Local Rule 1002-3 Complex Chapter 11 Cases: Selection of Motions and Applications for Expedited Hearing (a) Criteria.
In a complex chapter 11 case, a motion or application will be scheduled for an Expedited Hearing under L.B.R. 1002-2 only if it appears that an expedited ruling will either (1) materially enhance the possibility that the debtor will be able to continue to operate the business; (2) contribute to the preservation of the assets of the estate; or (3) facilitate the orderly and efficient administration of the case. (b) Typical Motions. The following are examples of motions or applications that ordinarily will be scheduled for an Expedited Hearing if the debtor requests: Administrative Matters (1) Motion for Joint Administration of Related Chapter 11 Cases; (2) Motion for Approval of Debtor Serving Notice of the § 341 Creditors’ Meeting; (3) Motion for Approval of Notice Procedures; (4) Motion for Approval of Claims Agent or Notice Agent; (5) Motion under L.B.R. 2090-1(b) for Admission of an Attorney Pro Hac Vice; (6) Motion for Order Scheduling Omnibus Hearing Dates; (7) Motion to Establish Procedures for Handling Reclamation Claims; (8) Motion to Establish Procedures for Sale of Property; (9) Motion Concerning the Appointment of a Consumer Privacy Ombudsman or Patient Care Ombudsman; Financing (10) Motion for Interim Authorization of Use of Cash Collateral; (11) Motion for Interim Authorization of Post-Petition Borrowing; (12) Motion for Approval of Debtor’s Continuing Use of Existing Bank Accounts, Business Forms, and Cash Management System, or Related Relief; (13) Motion for Approval of Interim Modified § 345 Investment Procedures and for Scheduling of Hearing on Permanent Modified § 345 Investment Procedures; -4- Operation of the Debtor’s Business (14) Motion for Approval to Pay Pre-Petition Employee Wage Claims, Benefits, and Related Taxes to all Employees, Independent Contractors, and Tax Authorities; (15) Motion for Approval to Pay Pre-Petition Trust Fund and/or Priority Taxes; (16) Motion for Approval to Pay or Honor Obligations to Customers; (17) Motion for Approval to Pay Other Pre-Petition Claims; (18) Motion for Order Authorizing and Directing Banks to Honor Certain Pre- Petition Checks; and (19) Motion for Interim Relief and for Scheduling of Hearing on Determination of Adequate Assurance to Utilities. (c) Other Motions.
A debtor may request that a motion or application that is not listed in subdivision (b) be heard at the Expedited Hearing.