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Case 16-42529 Doc 23 Filed 04/13/16 Entered 04/13/16 11:20:44 Main Document <br />Pg4of32 <br />Facts Relevant to this Motion <br />Background Regarding the Debtors' Surety Bond Program <br />7. The Debtors, in the ordinary course of their businesses and on a regular <br />basis, are required to provide surety bonds, either through third -party surety bond providers (the <br />"Third -Party Surety Bonds") or under certain self -bonding guidelines (the "Self -Bonding <br />Privileges" and, with the Third -Party Surety Bonds, the "Surety Bonds"), to various third parties <br />to secure the Debtors' payment or performance of certain obligations (the "Surety Bond <br />Program"). In particular, the Debtors commonly (although not exclusively) provide Surety <br />Bonds to governmental units or other public or regulatory agencies (collectively, the <br />"Governmental Authorities") pursuant to statutory requirements. The Debtors provide Surety <br />Bonds to secure obligations to various entities, including municipalities, state and federal <br />Governmental Authorities and contractual counterparties. Attached as Exhibit A hereto is a <br />schedule identifying, with respect to each of the Surety Bonds, (a) the obligee (collectively, the <br />"Obligees"), (b) the issuer (collectively, the "Issuers"), (c) the identification number for the <br />Surety Bond, (d) the purpose of the Surety Bond and (e) the amount of the Surety Bond.3 <br />8. As discussed in greater detail below, the Debtors' total Surety Bond <br />Program is comprised of bonds totaling $1.8 billion. Approximately $538.0 million of those <br />bonds are Third -Parry Surety Bonds. Approximately $1.15 billion of those bonds are self -bonds <br />issued under the Debtors' Self -Bonding Privileges. <br />9. It is critical to the Debtors' continued operations that they maintain the <br />Surety Bond Program. The failure to provide, maintain and timely replace the Surety Bonds may <br />The schedule attached hereto as Exhibit A is intended to be exhaustive but may inadvertently omit certain <br />Surety Bonds. The Debtors intend that the relief requested herein apply to all of their Surety Bonds and <br />reserve the right to supplement the schedule, if necessary. <br />-4- <br />