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2016-04-25_GENERAL DOCUMENTS - C1982056 (12)
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2016-04-25_GENERAL DOCUMENTS - C1982056 (12)
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Last modified
8/24/2016 6:21:05 PM
Creation date
4/26/2016 1:13:53 PM
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Template:
DRMS Permit Index
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
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DRMS
Permit Index Doc Type
General Correspondence
Email Name
MPB
JRS
JLE
Media Type
D
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No
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Case 16-42529 Doc 28 Filed 04/13/16 Entered 04/13/16 11:32:40 Main Document <br />Pg 20 of 31 <br />Accordingly, the Debtors request that payments of 20 -Day Administrative Claims not count <br />against the Essential Suppliers Cap. The Debtors intend to pay 20 -Day Administrative Claims of <br />parties if they are Essential Suppliers under the standards set forth above .4 <br />40. Because the 20 -Day Administrative Claims are treated under the Bankruptcy <br />Code as administrative claims, the Debtors believe that they could pay 20 -Day Administrative <br />Claims during these cases pursuant to sections 503 and 363(c)(1) of the Bankruptcy Code. <br />However, the Debtors also believe that they are not required to reconcile or pay the 20 -Day <br />Administrative Claims prior to the conclusion of these cases. <br />41. Timely payment of certain of the 20 -Day Administrative Claims will preserve the <br />Debtors' valued relationships with certain Essential Suppliers and reduce the chance that the <br />Debtors will face harmful supply disruptions during the initial and most critical phase of the <br />chapter 11 cases. Accordingly, the Debtors request that, for the avoidance of doubt, the Court <br />enter an order clarifying that the Debtors are authorized, but not required, to pay in their <br />discretion the 20 -Day Administrative Claims, or any portion thereof, of any Essential Supplier in <br />the ordinary course of the Debtors' businesses and on such terms and conditions as the Debtors <br />deem appropriate. <br />42. Courts in this and other districts have approved debtors' payments of such claims <br />in the Debtors' discretion. See, e.g., In re Noranda Aluminum, Inc., No. 16-10083 <br />Substantially contemporaneously herewith, the Debtors filed the Motion of the Debtors and Debtors in <br />Possession, Pursuant to Sections 105(a) and 503 of the Bankruptcy Code and Bankruptcy Rules 3002 and <br />3003, For an Order (I) Establishing Procedures to Resolve Claims Arising Under Section 503(b)(9) of the <br />Bankruptcy Code and (11) Granting Related Relief (the "503(b)(9) Motion"). Through the 503(b)(9) <br />Motion, the Debtors request that this Court establish procedures for the filing and payment of claims that <br />are entitled to administrative priority under section 503(b)(9) of the Bankruptcy Code. The proposed <br />procedures would allow the Debtors to pay claims entitled to section 503(b)(9) administrative priority held <br />by entities that are not Essential Suppliers and establish an orderly process for the assertion and <br />adjudication of 20 -Day Administrative Claims. <br />-20- <br />
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