Local Rule RULE 2015-2: DEBTOR IN POSSESSION DUTIES – CHAPTER 11 AFFIDAVIT

RULE 2015-2 DEBTOR IN POSSESSION DUTIES – CHAPTER 11 AFFIDAVIT

(a) Chapter 11 Debtor's Affidavit. A debtor's affidavit shall be filed in each chapter 11 case and in any case converted to chapter 11 from chapter 7, 12, or 13.

(b) Contents of Affidavit. A debtor in possession shall file an original affidavit attesting:

(1) To the nature of the debtor's business and a concise statement of the circumstances leading to its chapter 11 filing;

(2) If the debtor failed to file its summary of schedules (Official Form 206Sum) with the initial filing, a summary of the debtor's assets and liabilities;

(3) A list of all property of the debtor in the possession or custody of any custodian, public officer, mortgagee, pledgee, assignee of rents, or secured creditor or agent for any such person, giving the name, address and telephone number of such person and the court, if any, in which a proceeding relating thereto is pending;

(4) If the debtor failed to file its Schedule "A/B" (Assets – Real and Personal Property) or Schedule "G" (Executory Contracts and Unexpired Leases) with the initial filing, a list of real and personal property owned, under lease or, held under other arrangement, including, but not limited to the property from which the debtor operates its business; and

(5) If the debtor failed to file its statement of financial affairs with the initial filing, the location of its substantial assets, the location of its books and records, and the nature, location and value of assets, if any, held by the debtor outside the territorial limits of the United States.

(c) Additional Information Required if Business Continues. If the debtor intends to continue the operation of its business, the affidavit shall so state and set forth the information described in subparagraphs (1) – (3) below:

(1) The estimated amount of the weekly payroll payable to employees (exclusive of any officer, partner, stockholder, and director) for the thirty (30) day period following the filing of the chapter 11 petition;

(2) The amount paid and proposed to be paid for services for the thirty (30) day period following the filing of the chapter 11 petition:

(A) If a corporation, to any officer, stockholder, and director;

(B) If an individual, partnership, limited liability company, or limited liability partnership, to the individual or any member of the partnership or limited liability entity; and

(C) If a consultant has been retained, to such consultant; and

(3) A schedule setting forth for the thirty (30) day period following the filing of the petition: estimated cash receipts and disbursements, net cash gain or loss, accrued but unpaid obligations, other than professional fees, and any other information relevant to an understanding of the foregoing.

(d) When to File the Affidavit. In a voluntary chapter 11 case, the affidavit pursuant to this Rule shall be filed within seven (7) days of the filing of the petition. In an involuntary chapter 11 case, the affidavit shall be filed within seven (7) days after entry of the order for relief or after the filing of debtor's consent to the petition, whichever is earlier.

(e) Waiver of Requirements. The Court may waive the requirements of this Rule, except for subparagraphs (1) and (2) of paragraph (b), upon application of the debtor and notice to the United States trustee, if it determines that compliance with this Rule is impracticable.

Comment This Rule supplements Fed. R. Bankr. P. 1007 and should be read in conjunction with LBR 1019-1(e) when a case converts to chapter 11.