First Day Motions
First day motions are usually filed in the first few days of a chapter 11 case in order to enable the business debtor to facilitate the debtor's continued normal business operations without disruptions. Due to the urgency of the motions, notice may be limited to the major interested parties in the case such as the U.S. Trustee, the principal secured creditors, the largest twenty unsecured creditors, and anyone specifically requesting notice. The following are some typical first day motions.
Motion for Joint Administration of Related Cases - Often related debtors file for chapter 11 relief at the same time. This motion seeks to order the joint administration of related bankruptcy cases to avoid unnecessary duplication of effort and expenses. The related cases are consolidated for procedural purposes but they are not substantively consolidated, ie. the assets and liabilities of the related debtors remain separate.
Motion for Approval of Cash-Management System - Chapter 11 debtors are usually required to close pre-petition bank accounts and establish new debtor-in-possession ("DIP") bank accounts. In large complex cases, courts usually enter orders allowing the debtor to continue using its pre-bankruptcy cash management system to avoid disruptions.
Motion to Pay Pre-Petition Critical Vendors - Chapter 11 debtors often request permission to pay critical vendors for pre-petition goods and services in order to avoid the loss of vendors that may be critical to the debtor's ability to continue the operations of its business and reorganize. In addition, goods received by the debtor in the ordinary course during the 20 days prior to the bankruptcy have administrative expense status and may possibly be paid without need for court approval.
Motion for Joint Administration of Related Cases - Often related debtors file for chapter 11 relief at the same time. This motion seeks to order the joint administration of related bankruptcy cases to avoid unnecessary duplication of effort and expenses. The related cases are consolidated for procedural purposes but they are not substantively consolidated, ie. the assets and liabilities of the related debtors remain separate.
Motion for Approval of Cash-Management System - Chapter 11 debtors are usually required to close pre-petition bank accounts and establish new debtor-in-possession ("DIP") bank accounts. In large complex cases, courts usually enter orders allowing the debtor to continue using its pre-bankruptcy cash management system to avoid disruptions.
Motion to Pay Pre-Petition Critical Vendors - Chapter 11 debtors often request permission to pay critical vendors for pre-petition goods and services in order to avoid the loss of vendors that may be critical to the debtor's ability to continue the operations of its business and reorganize. In addition, goods received by the debtor in the ordinary course during the 20 days prior to the bankruptcy have administrative expense status and may possibly be paid without need for court approval.