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GENERAL42067
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Last modified
8/24/2016 8:10:34 PM
Creation date
11/23/2007 11:34:37 AM
Metadata
Fields
Template:
DRMS Permit Index
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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~r. i <br />E. Debtors' Motive in Reauestina an Extensicn of the <br />Exclusive Periods is to Continue to Make Pro4ress toward <br />Successful Recraanization. Debtors' motive in requesting an <br />extension of the Exclusive Periods is simply to maintain an <br />efficient recrganizaticn process. If the Court were to deny <br />Debtcrs' request for an extension of the Exclusive Periods, any <br />party in interest would be free to propose a plan or plans of <br />reorganization for any or all of Debtors. Although other parties <br />in ir,tzrest mat not, at this early point, come forward with <br />cc~peting plans of reorganization, such an occurrence could have <br />a sicnificant adverse impact on Debtors' business cperations and <br />the progress of these reorganization cases. By fractionalizing <br />the reorganization process, the Court would invite the <br />possibility of a chaotic Chapter 11 environment in which there <br />caould be no central focus of plan negotiations. Debtors' focus <br />caould of necessity be diverted from important reorganization <br />issues. Debtors believe that it is in the best interests of <br />creditors and other parties in interest to have Debtors continue <br />to focus on issues critical to their successful reorganization. <br />Another important reason that the Motion should be granted <br />is that the extensicn of the Exclusive Periods will reduce the <br />likelihood that Debtcrs' cases will become adversarial and <br />improve the likelihood of a negotiated consensual plan or plans <br />of reorganization. As the court in the UNR Industries case <br />noted: <br />[A) negotiated, consensual plan of reorganization <br />is the best route to take. The alternative which <br />right be brought on if the exclusive period were <br />ended could be disastrcus. <br />9 <br />
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