Local Rule LBR 4001-2: Motions for Use of Cash Collateral or to Obtain Credit
Bankr. W.D. Mich. — General rule
LBR 4001-2: Motions for Use of Cash Collateral or to Obtain Credit
(a) Contents of the Motion, Adequate Protection and Valuation of Secured Interests. In addition to the requirements of Fed. R. Bankr. P. 4001(b)(1)(B) and 4001(c)(1)(B), a motion for use of cash collateral under § 363(c) or to obtain credit under § 364(c) or (d) must explicitly state the adequate protection offered the creditor and the moving party's position as to the value of each of the secured interests to be protected. Pertinent appraisals and projections must be summarized in the motion.
(b) Cover Sheet.
(1) The motion must be filed with a completed form "Cover Sheet for Motion to Use Cash Collateral or to Obtain Financing," which is appended to these Rules as Exhibit 9. If a completed cover sheet is not filed, the Court may enter an order striking or denying the motion without prejudice to the movant's right to re-file the motion in compliance with this Rule.
(2) If any proposed order granting interim or final relief would alter any information given in the initial cover sheet, then the movant must file an amended cover sheet concurrently with the submission of the proposed order indicating where appropriate all changes from the original proposed order.
(c) Expedited Motion. If a debtor files a motion for entry of an order approving an agreement to use cash collateral or to obtain credit on an expedited basis, the Court may enter the order without a hearing if:
(1) the order is approved by:
(A) all creditors who have an interest in the cash collateral to be used,
(B) any entity extending the requested credit,
(C) the chairperson or attorney for each official committee (if any), and
(D) the United States Trustee;
(2) the order provides for the debtor to use cash collateral or to obtain credit in a maximum specified dollar amount necessary to avoid immediate and irreparable harm only until the earlier of:
(A) a final hearing, or
(B) the date the order becomes a final order;
(3) the order provides for a final hearing, to be scheduled by the Court when the order is entered;
(4) the order provides that the debtor will serve a copy of the motion with its attachments and the order on all parties who are required to be served under Fed. R. Bankr. P. 4001(d);
(5) the order provides that:
(A) objections to the order shall be filed within 14 days from the service of the order, except that an unsecured creditors' committee may file an objection within 14 days of its formation;
(B) on the filing of an objection, a final hearing will be held; and
(C) if no objections are timely filed, an order may become final; and
(6) the motion is accompanied by an affidavit or a declaration of the debtor, or a principal of the debtor, stating the facts on which the debtor relies in seeking the entry of the order on an expedited basis and the amount of money needed to avoid immediate and irreparable harm.
(d) Enlargement or Reduction of Time for Objecting; Hearing. On timely motion, the Court may enlarge or reduce the time within which an objection must be filed. The Court may schedule a hearing on the debtor's motion at any time with such notice as it deems appropriate.