Local Rule LBR 3017-1: Disclosure Statement – Approval

LBR 3017-1. Disclosure Statement – Approval

(a) Motion and Notice Required. A plan proponent seeking approval of a disclosure statement related to a chapter 11 plan must file a motion for approval with the disclosure statement attached as an exhibit. Except as provided in LBR 3017-2, the moving party must immediately obtain a hearing date and promptly give at least 28 days' notice of the hearing to all parties in interest.

(b) Form of Notice. Unless the court orders otherwise, the notice of the hearing on a motion to approve a disclosure statement must substantially conform to the local form (Notice of Hearing on Disclosure Statement).

(c) Objections. A party objecting to approval of the disclosure statement must file a written objection not later than 7 days before the hearing date. The objection should specify why the disclosure statement (rather than the proposed plan) is objectionable. The court generally will not entertain arguments about plan confirmation at the disclosure statement hearing.

(d) Intention to Proceed. Not later than 3 days prior to the hearing (and any continued hearing), the plan proponent shall advise the court by telephone or e-mail whether the proponent intends to go forward with the hearing.

(e) Duty to Confer. If an objection to the proposed disclosure statement is filed, the plan proponent and the objecting party must confer in a good faith attempt to resolve the dispute.

(f) Request for Continuance. A plan proponent desiring a continuance of the hearing on a disclosure statement shall appear at the scheduled hearing to request a continuance.

(g) Adequate Information. A plan proponent may establish that the proposed disclosure statement contains adequate information through offer of proof, declaration, or, if the court so requires, live testimony. In all cases, a witness competent to testify must be present. The plan proponent is not required to file briefs or memoranda.

(h) Confirmation Hearing. At the conclusion of the disclosure statement hearing, counsel for the plan proponent shall be prepared to advise the court of the amount of court time the confirmation hearing will require. If a contested confirmation hearing is anticipated, the court will entertain requests that scheduling procedures be established concerning the filing of briefs, exchange and marking of exhibits, disclosure of witnesses and discovery.

(i) Order Approving Disclosure Statement. If the disclosure statement is approved at the hearing, the plan proponent must promptly prepare and submit for signing an order that substantially conforms to Order Approving Disclosure Statement and Fixing Time for Filing Acceptances or Rejections of Plan, Combined with Notice Thereof (Official Form 313). The proposed order must attach the approved disclosure statement as an exhibit.