Local Rule 3017-2: Conditional Approval of Disclosure Statements in Small Business Cases or in a Case Under Subchapter V of Chapter 11

LOCAL RULE 3017-2 Conditional Approval of Disclosure Statements in Small Business Cases or in a Case Under Subchapter V of Chapter 11 A. Preliminary Review by the United States Trustee: If a Small Business Debtor as defined in 11 U.S.C. § 101(51D) or a debtor in a case under Subchapter V of Chapter 11 in which the Court has ordered that §1125 applies (collectively, the "Debtor") wishes to obtain conditional approval of a disclosure statement, the Debtor shall submit the proposed plan and disclosure statement to the Office of the U.S. Trustee for the Western District of Virginia no fewer than seven (7) days before the proposed plan and disclosure statement are filed with the Court. The U.S. Trustee shall then provide comments to the Debtor within seven (7) days thereafter.

B. Filing with the Court: The Debtor shall file with the Court the proposed plan and disclosure statement together with a motion for conditional approval of the proposed disclosure statement certifying compliance with this Rule and containing a statement as to whether the disclosure statement as filed addresses any concerns expressed by the U. S. Trustee. In addition, the Debtor shall attach to the Motion an affidavit attesting to the truthfulness of the contents of said disclosure statement and that all known material facts germane to the financial condition of the Debtor have been disclosed. The affidavit shall be signed by the Debtor(s), or if the Debtor is a legal entity, by such entity's chief officer. Such motion and proposed plan and disclosure statement shall be served upon the Office of the U. S. Trustee, counsel for any appointed creditors' committee, upon any attorney who has filed a notice of appearance or otherwise appeared in the case, and upon any party that has either actually appeared in the case or has filed a request to receive notice.

C. Response by United States Trustee: Within seven (7) days after the filing of the plan, disclosure statement and motion for conditional approval, the U.S. Trustee shall file a statement with the Court indicating either that the filed disclosure statement is satisfactory to the Office of the United States Trustee, or if not, in what respects it is considered to be deficient. Any other party in interest may file a similar statement within such period. The Court will consider any such statements filed before ruling on the motion.

D. Action by the Court: The Court may either grant or deny the motion for conditional approval without a hearing or may schedule the same for an expedited hearing.

E. Additional Considerations:

1. The procedure for conditional approval described herein shall not extend any deadline for filing a plan and disclosure statement previously set by the Court.

2. The Debtor shall bear the burden of obtaining final approval of the disclosure statement in accord with the requirements of 11 U.S.C. § 1125.

3. Conditional approval of the disclosure statement shall not prohibit any party from making timely objection to final approval of such disclosure statement.

Codifies Standing Order 13