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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 04/13/1611:20:44 Main Document <br />Pg 9 of 32 <br />19. The Bankruptcy Code does not define "ordinary course of business." <br />However, bankruptcy courts within the Eighth Circuit have held that a transaction qualifies as <br />"ordinary course" if it: (a) "is of a type that is commonly undertaken within the debtor's <br />industry," Peltz v. Gulfcoast Workstation Grp. (In re Bridge Info. Sys., Inc.), 293 B.R. 479, 486 <br />(Bankr. E.D. Mo. 2003); and (b) is consistent with the reasonable expectations of creditors. <br />Johnston v. First St. Cos. (In re Waterfront Cos.), 56 B.R. 31, 35 (Bankr. D. Minn. 1985). See <br />also In re Bridge Info. Sys., Inc., 293 BR. at 486 (courts look to "whether interested parties <br />would reasonably expect[] the particular debtor in possession to seek court approval before <br />entering into the questioned transaction."). A "fundamental characteristic of an 'ordinary' post- <br />petition business transaction is its similarity to a pre-petition business practice." <br />In re Commercial Morg. & Fin., Co., 414 B.R. 389, 394 (Bankr. N.D. Ill. 2009) (citing <br />Martino v. First Nat'l Bank of Harvey (In re Garofalo's Finer Foods, Inc.), 186 B.R. 414, 426 <br />(N. D. Ill. 1995)). See also Comm. of Asbestos Litigants v. Johns -Manville Corp. (In re Johns - <br />Manville Corp.), 60 B.R. 612, 617 (Bankr. S.D.N.Y. 1986) (finding that "the nature of the <br />debtor's business prior to its Chapter 11 filing is compared to its course of conduct postpetition") <br />In determining whether a transaction is ordinary, two relevant factors are the type of business a <br />debtor is engaged in as well as the size and nature of the business and transaction in question. In <br />re H&S Transp. Co., 115 B.R. at 598. <br />20. Like other coal companies, the Debtors regularly continue and renew <br />bonds and utilize self -bonding privileges as part of their Surety Bond Program in the ordinary <br />course of their business. Indeed, such transactions are often mandated for coal companies under <br />state and federal law. Because the Debtors anticipate entering into postpetition Surety Bond <br />Program transactions that will be similar to those that the Debtors routinely entered into prior to <br />In <br />
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