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2016-04-27_GENERAL DOCUMENTS - C1992081
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2016-04-27_GENERAL DOCUMENTS - C1992081
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Last modified
8/24/2016 6:21:14 PM
Creation date
4/29/2016 9:47:11 AM
Metadata
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Template:
DRMS Permit Index
Permit No
C1992081
IBM Index Class Name
General Documents
Doc Date
4/27/2016
Doc Name
Motion of the Debtors in Possession
From
United States 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 12 of 32 <br />original, internal quotations and alterations omitted)); Four B. Corp. v. Food Barn Stores, Inc. (In <br />re Food Barn Stores, Inc.), 107 F.3d 558, 567 n.16 (8th Cir. 1997) (holding that "[w]here the <br />[debtor's] request is not manifestly unreasonable or made in bad faith, the court should normally <br />grant approval 'as long as the proposed action appears to enhance the debtor's estate"') (quoting <br />Richmond Leasing Co. v. Capital Bank, N.A., 762 F.2d 1303, 1309 (5th Cir. 1985) (internal <br />alterations and quotations omitted)); Oficial Comm. Of Subordinated BondholdersY. Integrated <br />Res., Inc. (In re Integrated Res., Inc.), 147 B.R. 650, 656 (S.D.N.Y. 1992) (finding that "[c]ourts <br />are loath to interfere with corporate decisions absent a showing of bad faith, self-interest, or <br />gross negligence"). <br />25. Because sound business reasons exist for the Debtors to maintain the <br />Surety Bond Program, as described above, the Debtors request that the Court authorize them to <br />pay all prepetition and postpetition amounts (including the Bond Premiums) due pursuant to the <br />Surety Bond Program and maintain, renew, replace and obtain new Third -Party Surety Bonds, <br />and continue utilizing their Self -Bonding Privileges, pursuant to section 363(b)(1) of the <br />Bankruptcy Code (to the extent the Court determines that such bonds are not in the ordinary <br />course of the Debtors' businesses). For the reasons discussed above, the Debtors submit that the <br />continuation of the Surety Bond Program and the payment of prepetition and postpetition <br />obligations arising under the Surety Bond Program (including the Bond Premiums) are essential <br />to preserving the Debtors' businesses and preserving the value of the Debtors' estates for all <br />creditors. <br />The Payment of the Prepetition Bond Premiums Is Appropriate Under Section 105(a) of the <br />Bankruptcy Code and the Doctrine of Necessity <br />26. The Court may also authorize the Debtors to pay the prepetition amounts <br />due in connection with the Surety Bond Program (including the Bond Premiums) pursuant to <br />-12- <br />
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