Local Rule 3017-2: Disclosure Statements in Small Business Cases

Rule 3017-2 Disclosure Statements in Small Business Cases

(a) Content. In a case that is a "small business case" as defined in § 101(51C) of the Code, the following provisions of AK LBR 3016-2 apply to the disclosure statement or, in a case to which subsection (d) applies, the plan: (1) paragraphs (1), (2), (3), (6)[C], (6)[E], (6)[I], (6)[J], (7), (9), (10), (11), (12), (13), (14), and (17) of subsection (b); (2) subsection (c); and (3) subsection (d).

(b) Transmittal to United States Trustee. Concurrent with the filing, except as provided in subsection (e), the proponent of a plan must transmit a copy of the proposed disclosure statement and plan to the United States trustee.

(c) Conditional Approval by the Court.

(1) Within fourteen (14) days after the disclosure statement is filed and transmitted, the United States trustee must file with the court and serve on the party filing the disclosure statement a statement signifying that the United States trustee has: [A] reviewed the disclosure statement; and [B] finds that the disclosure statement either— (i) provides adequate information as required by § 1125 of the Code, or (ii) does not contain adequate information as required by § 1125, briefly delineating those areas that, in the opinion of the United States trustee, are deficient.

(2) If the United States trustee objects to the adequacy of the disclosure statement or the court finds the disclosure statement inadequate, the court will schedule a hearing on the disclosure statement with counsel for the proponent and the United States trustee to discuss the perceived deficiencies.

(3) If the United States trustee signifies that the disclosure statement provides adequate information, the court may conditionally approve the disclosure statement without further hearing.

(d) Objections to Conditionally Approved Disclosures Statements.

(1) Unless otherwise ordered by the court, objections to a conditionally approved disclosure statement must be filed and served on the proponent of the disclosure statement and transmitted to the United States trustee not less than seven (7) days prior to the hearing on the confirmation of the plan.

(2) Grounds for objection must be: [A] addressed to the adequacy of the disclosure statement only; and [B] stated with specificity.

(3) If no timely objection is filed to the conditionally approved disclosure statement, the conditional approval is final.

(4) Any objections to the conditionally approved disclosure statement will be heard at the time and date set for the hearing on the confirmation of the plan immediately prior to the confirmation hearing.

(e) Waiver of Disclosure Statement. A determination that a plan provides sufficient information and a separate disclosure statement is not required will be made upon written motion under Rule 9013, Federal Rules of Bankruptcy Procedure.

(1) The proponent of the plan must transmit the motion and a copy of the proposed plan to the United States trustee.

(2) Unless otherwise ordered by the court: [A] subsection (c) applies to motions to waive a separate disclosure statement; and [B] subsection (d) applies to a plan to which the motion to waive a separate disclosure statement has been granted and the court has conditionally approved the disclosures made as adequate.

(f) Objections to Claims, Valuation and Claims Estimation. In small business cases: (1) [A] Objections to claims under Rule 3007, Federal Rules of Bankruptcy Procedure must be filed not later than thirty-five (35) days after the claims bar date. [B] Absent good cause shown, objections to claims must be scheduled for hearing at or before the confirmation hearing.

(2) Requests for valuation of security under Rule 3012, Federal Rules of Bankruptcy Procedure and estimation of contingent and unliquidated claims under §502(c) of the Code must: [A] be served and filed not less than thirty-five (35) days prior to the confirmation hearing; and [B] unless otherwise ordered by the court, heard concurrently with the confirmation hearing.