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2016-04-14_GENERAL DOCUMENTS - C1994082 (5)
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2016-04-14_GENERAL DOCUMENTS - C1994082 (5)
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Last modified
8/24/2016 6:20:46 PM
Creation date
4/18/2016 12:14:20 PM
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Template:
DRMS Permit Index
Permit No
C1994082
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
JHB
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 10 of 32 <br />the Petition Date, the Debtors' continued engagement in these transactions is consistent with <br />reasonable expectations of creditors. <br />21. Based on the foregoing, the Debtors believe that they may pay all <br />postpetition amounts due pursuant to the Surety Bond Program and renew or obtain new Third - <br />Party Surety Bonds, and continue utilizing their Self -Bonding Privileges, without notice and a <br />hearing, as such actions are in the ordinary course of the Debtors' businesses. Nevertheless, the <br />Debtors request that the Court enter an order expressly authorizing them to do so to: <br />(a) eliminate any doubt on the part of any party, including Issuers, Obligees, third parties and <br />financial institutions with respect to the Debtors' authority to continue such programs; and <br />(b) encourage Issuers not to attempt to terminate or decline to renew the Third -Party Surety <br />Bonds, or refuse to enter into Third -Party Surety Bonds with the Debtors in the future. <br />Continuing the Surety Bond Program Is in the Best Interests of the Debtors' Estates <br />22. Alternatively, if the Court determines that the Surety Bond Program is not <br />within the ordinary course of the Debtors' businesses, then the Debtors request that the Court <br />enter an order pursuant to section 363(b)(1) of the Bankruptcy Code authorizing the Debtors to <br />continue the Surety Bond Program in the best interests of the Debtors' estates. <br />23. Section 363(b) of the Bankruptcy Code allows a debtor, after notice and <br />hearing, to "use, sell, or lease, other than in the ordinary course of business, property of the <br />estate." 11 U.S.C. § 363(b)(1). A debtor's decisions to use, sell or lease assets outside the <br />ordinary course of business must be based upon a sound business purpose. See In re Channel <br />One Commc'ns, Inc., 117 B.R. 493, 496 (Bankr. E.D. Mo. 1990) (citing Comm. of Equity Sec. <br />Holders v. Lionel Corp. (In re Lionel Corp.), 722 F.2d 1063, 1071 (2d Cir. 1983)). See also TLP <br />Servs., LLC v. Stoebner (In re Polaroid Corp.), 460 B.R. 740, 741-42 (B.A.P. 8th Cir. 2011) <br />(allowing a trustee, pursuant in part to section 363(b)(1), to use cash collateral to fund efforts to <br />-10- <br />
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