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2016-04-14_GENERAL DOCUMENTS - C1982056 (2)
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2016-04-14_GENERAL DOCUMENTS - C1982056 (2)
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Entry Properties
Last modified
8/24/2016 6:20:44 PM
Creation date
4/18/2016 10:36:46 AM
Metadata
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Template:
DRMS Permit Index
Permit No
C1982056
IBM Index Class Name
General Documents
Doc Date
4/14/2016
Doc Name
Motion of the Debtors and Debtors in Possession
From
United State Bankruptcy Court
To
DRMS
Permit Index Doc Type
General Correspondence
Email Name
MPB
JRS
JLE
Media Type
D
Archive
No
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Case 16-42529 Doc 23 Filed 04/13/16 Entered 04/13/16 11:20:44 Main Document <br />Pg 12 of 32 <br />original, internal quotations and alterations omitted)); Four B. Corp. v. Food Barn Stores, Inc. (In <br />re Food Barn Stores, Inc.), 107 F.3d 558, 567 n.16 (8th Cir. 1997) (holding that "[w]here the <br />[debtor's] request is not manifestly unreasonable or made in bad faith, the court should normally <br />grant approval 'as long as the proposed action appears to enhance the debtor's estate"') (quoting <br />Richmond Leasing Co. v. Capital Bank, N.A., 762 F.2d 1303, 1309 (5th Cir. 1985) (internal <br />alterations and quotations omitted)); Official Comm. Of Subordinated Bondholders v. Integrated <br />Res., Inc. (In re Integrated Res., Inc.), 147 B.R. 650, 656 (S.D.N.Y. 1992) (finding that "[c]ourts <br />are loath to interfere with corporate decisions absent a showing of bad faith, self-interest, or <br />gross negligence"). <br />25. Because sound business reasons exist for the Debtors to maintain the <br />Surety Bond Program, as described above, the Debtors request that the Court authorize them to <br />pay all prepetition and postpetition amounts (including the Bond Premiums) due pursuant to the <br />Surety Bond Program and maintain, renew, replace and obtain new Third -Parry Surety Bonds, <br />and continue utilizing their Self -Bonding Privileges, pursuant to section 363(b)(1) of the <br />Bankruptcy Code (to the extent the Court determines that such bonds are not in the ordinary <br />course of the Debtors' businesses). For the reasons discussed above, the Debtors submit that the <br />continuation of the Surety Bond Program and the payment of prepetition and postpetition <br />obligations arising under the Surety Bond Program (including the Bond Premiums) are essential <br />to preserving the Debtors' businesses and preserving the value of the Debtors' estates for all <br />creditors. <br />The Payment of the Prepetition Bond Premiums Is Appropriate Under Section 105(a) of the <br />Bankruptcy Code and the Doctrine of Necessity <br />26. The Court may also authorize the Debtors to pay the prepetition amounts <br />due in connection with the Surety Bond Program (including the Bond Premiums) pursuant to <br />-12- <br />
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