Restructuring

Contributed by Yvanna Custodio
The United States Bankruptcy Court for the Southern District of New York recently published amendments to the local rules, which go into effect on August 1, 2013. You can find a complete set of the local rules here.
The amendments include the following broad topics:

1. List of Creditors – Local Rule 1007-1 was revised to include the requirements relating to the debtor’s duty to file a list of creditors and mandates certain procedures that the debtor or debtor’s attorney should follow pursuant to a prior general order pertaining to the debtor’s duty to file a list of creditors in a bankruptcy case.
2. Chapter 15 Cases – Local Rule 2002-4 references the notice requirements set forth in Rule 2002(q)(1) of the Federal Rules of Bankruptcy Procedure relating to the commencement of a chapter 15 case and requires that the notice “include a statement that, at the hearing, the Court may order the scheduling of a case management conference to consider the efficient administration of the case.” Local Rule 5009-2 governs the closing of a chapter 15 case.
3. Postconfirmation Requirements and Closing Reports – Local Rule 3021-1 requires the plan proponent or other responsible person to, among other things, submit a proposed order on presentment containing “a timetable with the steps proposed for achieving substantial consummation of the plan and entry of a final decree[.]” Local Rule 3022-1 now tracks section 350(a) of the Bankruptcy Code on the closing of cases and requires the filing of a closing report “within 14 days after the estate is fully administered and the Court has discharged any trustee serving in the case[.]”
4. Initial Pretrial Conferences – Local Rule 7016-2 requires a pretrial conference in every adversary proceeding and specifies the notice procedures governing the initial and subsequent conferences.
5. Time Extensions – If a motion to extend time is timely filed, Local Rule 9006-2 provides for an automatic extension of time until the court resolves the motion without the need for a prior court order, provided that the application of the rule would be consistent with other provisions of the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, local rules, or court order. The comment clarifies that Local Rule 6006-1(c) governs extensions of time for a lessee to assume or reject an unexpired lease of nonresidential real property.
6. Captions – All motions and related pleadings must include the deadline for filing objections or other responsive papers in the captions, pursuant to Local Rule 9004-2. The docket number for the proceeding must also be included in all objections or other responsive papers.
7. Certificates of No Objection – Local Rule 9075-2 governs the filing of a certificate of no objection in circumstances where “a motion or application has been filed and appropriate notice thereof has been served, and no objection, responsive pleading, or request for a hearing . . . has been filed or served before 48 hours after the expiration of the time to file an objection[.]” Subject to certain exceptions (e.g., the Bankruptcy Code or the Federal Rules of Bankruptcy Procedure require a hearing), the court may, upon receipt of the certificate of no objection, enter the order granting the motion and cancel the hearing without further notice.
8. Links to Online Forms, Procedures, and Guidelines – The amended local rules provide links to the court website containing applicable forms, procedures, and guidelines. For example, links to the following documents are provided: (i) Guidelines for Fees and Disbursements for Professionals in Southern District of New York Bankruptcy Cases, (ii) the form conforming to the Order Granting Application(s) for Allowance of Interim/Final Compensation and Reimbursement of Expenses promulgated by the bankruptcy court, (iii) Prepackaged Chapter 11 Guidelines, (iv) Guidelines for the Conduct of Asset Sales, and (v) procedures governing alternative dispute resolution.