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L.B.R. 3017-1.1. Conditional Approval of Disclosure Statement in Small Business Cases

(a)  Motion for Conditional Approval of Disclosure Statement.  A small business debtor who seeks conditional approval of a disclosure statement, must file the disclosure statement and a motion for conditional approval of the disclosure statement pursuant to 11 U.S.C. § 1125(f)(3)(A) (“Motion for Conditional Approval”).  The debtor must attach the proposed plan as an exhibit to the Motion, but not file it as a separate document until the Court has ruled on the Motion.

(1)  Filing Requirement.  In order to assist the small business debtor and the Court in meeting the time requirements of 11 U.S.C. §§ 1121(e)(3) and 1129(e), in the Motion for Conditional Approval, the debtor must set forth the following proposed deadlines and dates:

(A) date by which the debtor will need the Court’s conditional approval in order to meet all other deadlines;

(B) date by which the debtor must file its chapter 11 plan;

(C) date by which the debtor must serve its plan, disclosure statement, and ballot to all creditors and other parties in interest pursuant to Fed. R. Bankr. P. 2002(b) and 3017;

(D) deadline for all parties to file written objections to the disclosure statement;

(E) deadline for all parties to file written acceptances or rejections of the plan;

(F)  deadline for all parties to file written objections to the plan; and

(G) date by which the debtor will need a hearing on final approval of the disclosure statement (if any objection is timely filed) and on confirmation of the plan in order to stay within the deadlines in 11 U.S.C. §§ 1121(e) and 1129(e).  The proposed adequacy of disclosure statement and plan objection deadlines and the proposed deadline for acceptance or rejection of the plan may be the same date.

(2)  Notice.  The debtor must serve the Motion for Conditional Approval on the United States Trustee, trustee, and parties requesting notice.

(3)  Orders.  The Court may, in its discretion, enter an order without a hearing on notice as the Court may direct.

(b)  Order.  If the Court conditionally approves the disclosure statement, the Court will issue an order in substantial conformity with L.B.F. 3017.1-1.1.

(1)  Notice.  The debtor must serve the order, plan, disclosure statement, and ballot on all creditors and other parties in interest pursuant to Fed. R. Bankr. P. 2002(b) and 3017.

(2)  Certificate of Service.  The debtor must file a certificate of service as to the order, plan, disclosure statement, and ballot within three days of service.

(c)  Objections.  Objections to the adequacy of the disclosure statement must specify clearly the grounds upon which they are based, including the citation of supporting legal authority, if any, and reference to the particular portions of the disclosure statement to which the objection is made.  General objections will not be considered by the Court.