Local Rule Rule 4001-3: Motion for Payment of Pre-Petition Claims of Critical Vendors

Rule 4001-3 Motion for Payment of Pre-Petition Claims of Critical Vendors

(a) Contents of Motion. A motion requesting the authority to pay the pre-petition claims of creditors that a debtor deems critical to its operations or to the preservation of the estate (a "Critical Vendor") must, at a minimum, include the following information: (1) the aggregate amount to be paid to all Critical Vendors; (2) the names of, and the amount proposed to be paid to, each Critical Vendor; (3) the reasons why each of the subject creditors is a Critical Vendor; (4) the potential loss of economic advantage to the estate or to the debtor's going concern value by the nonpayment of the pre-petition claim of each of the Critical Vendors; (5) the steps taken or to be taken by which the debtor might deal with the Critical Vendors, other than by payment of the pre-petition claim, and whether it is necessary to pay 100% of the pre-petition claim of the Critical Vendors to obtain the required post-petition goods or services; (6) the extent to which the claims of the Critical Vendors may be entitled to payment as administrative priority or secured claim; (7) the terms by which the debtor will seek to do business with the Critical Vendors post-petition, including the terms of any post-petition credit; and (8) the impact of granting the requested relief on the creditors deemed not to be Critical Vendors.

(b) Not First Day Motion. Consistent with F.R.Bankr.P. 6003(b), a Critical Vendor motion will not be considered a First Day Motion.

(c) Service of Motion. The motion must be served on all creditors.