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2007 NORTON BANKRUPTCY LAW SEMINAR MATERIALS

CHAPTER 11 OPERATIONS

By Hon. Randolph J. Haines

 

cases dealing with particular kinds of orders. In addition, some districts have enacted local rules or general orders regarding first day orders, usually only procedural in form but likely telegraphing the local court's (or U.S. Trustee's) attitudes about particular kinds of provisions. Delaware's new local rules will be examined in detail as an example of such local rules.


Delaware's First Day Procedures

The Delaware Bankruptcy Court has adopted new local rules, effective February 1, 2001, that include special procedures for motions for first day orders. A significant number of bankruptcy courts have adopted similar procedures.

If circumstances permit, the debtor is required to notify the U.S. Trustee at least 48 hours prior to filing a motion on which the debtor requests a hearing on less than five business days' notice and prior to the formation of a creditors' committee or the § 341 meeting. Del. Local Rule ("DLR") 9013-2(a) & (c). The purpose of the notification is to advise the U.S. Trustee of the anticipated filing of the petition and the matters on which the debtor intends to seek such expedited relief. In addition, the motion shall be served on the U.S. Trustee, in substantially final form, at least 24 hours in advance of the hearing. Id. When the petition is filed, the court will contact debtor's counsel and the U.S. Trustee to schedule the hearing. Id.

Any order entered as a result of such a motion or hearing shall be served within two business day on the U.S. Trustee, the list of 20 largest creditors and such other entities as the court directs. DLR 9013-2(d). Any party in interest may file a motion to reconsider

 

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