GENERAL42067

• Permit No: M1977376
• IBM Index Class Name: General Documents
• Doc Name: MEMORANDUM OF LAW IN SUPPORT OF MOTION FOR ORDER EXTENDING DEBTORS EXCLUSIVE PERIODS TO FILE PLANS
• Media Type: D
• Archive: No

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t e Exclusive Acce.tance Period expires on or about 1^.av 6, 1991.
Debtcrs seek a 120-day extension of both periods.
Section 1121 of the Bankruptcy Coda prcvides that the
Ccurt, for cause, may reduce or increase the Exclusive Filing and
tr_a Exclusive Acceptance Periods (the Exclusive Filing and
Exclusive P.cceptance Periods together will be referred to as the
"Exclusive Periods"). Although the Bankruptcy Code does not
define the term "cause," many courts have construed the tern.
The deter:;iaation of whether to extend the debtcr's
exclusive pericds i= a decision committed to the sound discreticr:
o_° the bankruptcy court based upon the circumstances of each
particular case. In re Murray, 116 Bankr. 6, 9 n. 3 (D. Mass
1990); In re RC~I Anlaaenivestitionen Frodsaesellschaft II -
honr..anditaesellschaft a/k/a RC'i II, 118 Bankr. 460, 463-6= (;d.D.
Mich. 1990) (denying motion for leave to appeal order extending
exclusive period; bankruptcy court found extension "warranted
based en the facts and circumstances of the case"); In re Gibson
& Cush.:~an Dredcing_Coro., 101 Bankr. 405, 404 (E.D.PI.Y. 1989)
(flexibility inheres in "cause" standard); First American Bark of
New Ycrn v. Southwest Gloves and Safety Ecuioment. Inc., 64
Bankr. 963, 965 (D. Del. 1986); In re Public Service Co. of Pte .r
Hamnsh~.re, 88 Bankr. ~21, 534 (Bankr. D. N.H. 1988) ("t'ne
legislative intent has been construed to leave the question to
the reorganization court in the exercise of its discretion and to
promote maximum flexibility to suit various types of
reorganization proceedings"); In re Texaco, Inc., 76 Bankr. 322,
325 (Bankr. S.D.PI.Y. 1987). The legislative history cf 11 U.S.C.
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