The Debtor, a debtor under Subchapter V of Chapter 11, sought an extension of the 90- day period set by 11 U.S.C. § 1189(b) to file its plan. Section 1189(b) permits the Court to grant an extension only “if the need for the extension is attributable to circumstances for which the debtor should not justly be held accountable.” The only reason asserted by the Debtor to justify extension of the Section 1189(b) period was that a hearing was set in the near future on an objection to the Debtor’s post-petition financing agreement, resolution of which the Debtor asserted was a threshold plan issue. However, after the Debtor requested the extension of time, the Debtor withdrew its financing motion and requested that the hearing be vacated. Nevertheless, the Debtor continued to seek an extension of time to file its plan.
The Court reviewed the decisions of courts which have examined the Section 1189(b) phrase and case law interpreting Section 1221 which uses the same phrase. The Court adopted a “Beyond-the-Debtor’s-Control” standard and concluded that extensions of time to file Subchapter V plans “should not be routinely granted. Instead, debtors bear the stringent or high burden of proving that the requested extension is based on circumstances ‘for which the debtor should not justly be held accountable.’ That means circumstances beyond the debtor’s control.” Having so concluded, the Court found that the Debtor had failed to meet its burden insofar as the circumstances asserted were entirely within the Debtor’s control. The Court denied the requested extension of time.