2016-04-25_GENERAL DOCUMENTS - C1982056 ‎(12)‎

• Permit No: C1982056
• IBM Index Class Name: General Documents
• Doc Date: 4/25/2016
• Doc Name: Motion of the Debtors and Debtors in Possession Pursuant to Sections
• From: United State Bankruptcy
• To: DRMS
• Permit Index Doc Type: General Correspondence
• Email Name: MPB
• Email Name: JRS
• Email Name: JLE
• Media Type: D
• Archive: No

Case 16-42529 Doc 28 Filed 04/13/16 Entered 04/13/16 11:32:40 Main Document
Pg 11 of 31
whom would benefit the Debtors' chapter 11 estates by promoting a successful reorganization.
The Debtors intend to require clear prospective commitments from these vendors to supply the
Debtors in exchange for, and as a condition to, the payment of the Essential Supplier Claims
and/or 20 -Day Administrative Claims, as discussed in detail below.
The Essential Suppliers Cap
24. The Debtors' management and employees have identified a limited number of
vendors and service providers that constitute Essential Suppliers. The Debtors intend to pay the
least amount possible on Essential Supplier Claims and to require postpetition commitments in
exchange for, and as a condition to, the payment of Essential Supplier Claims and 20 -Day
Administrative Claims (as discussed in detail below). The Debtors therefore seek authority, in
their discretion, to the extent permitted by the Debtors' postpetition secured debtor-in-possession
financing, to pay Essential Supplier Claims, up to the maximum aggregate amount of
approximately $10.3 million (the "Essential Suppliers Cap"), an amount equal to approximately
4.5% of the Debtors' 2015 annual expenditures to the Essential Vendors. Given the potential
impairment to the value of their businesses that could result from nonpayment of any Essential
Suppliers, the Debtors submit that the Essential Suppliers Cap is a reasonable and appropriate
cap on the expenditure of estate funds. Additionally, because the 20 -Day Administrative Claims
if allowed will be entitled to administrative priority pursuant to section 503(b)(9), the Debtors
request separate authority to make payments on the 20 -Day Administrative Claims without limit
on the maximum aggregate amount.
Conditions on Payment of Essential Supplier and 20 -Day Administrative Claims
25. In an effort to ensure that the prompt payment of each Essential Supplier Claim
and 20 -Day Administrative Claim provides the Debtors with a benefit to their estates, the
Debtors propose that each recipient of a payment upon any portion of an Essential Supplier