Section 1121(c)(3) of the Bankruptcy Code provides that any party in interest mayfile a plan, if and only if “the debtor has not filed a plan that has been accepted, before 180 daysafter” the Petition Date (the “180-day Exclusivity Period”).4.
Section 1121(d)(1) of the Bankruptcy Code provides that “on request of a party ininterest made within the respective periods specified in subsections (b) and (c) of this section andafter notice and a hearing, the court may for cause reduce or increase the 120-day period or the 180-day period referred to in this section.”5.
In the instant case, the 120-day Exclusivity Period was previously extended by Orderof the Court to October 1, 2012, and the 180-day Exclusivity Period extended to November 27,2012. (
Order Granting Motion to Extend Exclusivity Periods Under 11 U.S.C. § 1121(d)(1),Doc. #153.)
The Debtors seek to extend both the 120-day Exclusivity Period and the 180-dayExclusivity Period by approximately 45 days each, to November 15, 2012 and January 11, 2013,respectively.6.
The Exclusivity Period under 11 U.S.C. § 1121(c) is intended to afford a debtor ameaningful opportunity to develop and confirm a consensual plan of reorganization under Chapter11 of the Bankruptcy Code.
See In re Aspen Limousine Service, Inc.
, 187 BR 989 (Bankr. D. Colo1995).7.
“Cause” is not defined under 11 U.S.C. § 1121(d)(1). However, courts have adopteda non-exclusive list of factors that a court may consider in determining whether to extend anexclusivity period.
See In re Friedman’s, Inc.
, 336 B.R. 884 (Bankr. S.D. Ga. 2005).8.
Such factors include:a.
the size and complexity of the debtor’s case;b.
the necessity of sufficient time to negotiate and prepare adequateinformation;c.
the existence of good faith progress toward reorganization;d.
whether the debtor is paying its bills as they come due;e.
whether the debtor has demonstrated reasonable prospects for filing a viableplan;f.
whether the debtor has made progress in negotiations with its creditors;g.
the amount of time which has elapsed in the case;h.
whether the debtor is seeking an extension to pressure creditors; andi.
whether an unresolved contingency exists.
Case:12-13815-ABC Doc#:176 Filed:09/27/12 Entered:09/27/12 09:48:16 Page2 of 4