Court Update 11/30/11

This afternoon, the Court entered the following orders:
  • Interim Order (I) Authorizing, But Not Directing, Debtors to (A) Continue Their Insurance Programs, and (B) Pay All Insurance Obligations, (II) Modifying the Automatic Stay with Respect to Workers Compensation Claims, and (III) Authorizing and Directing Financial Institutions to Honor and Process Related Checks and Transfers And (IV) Scheduling Final Hearing
  • Interim Order Authorizing Payment Of PrePetition (I) Claims Of Independent Contractors (II) Claims Related To Improvement Projects, And (III) Scheduling Final Hearing
  • Interim Order Authorizing Payment Of Certain Prepetition (I) Shipping And Delivery Charges For Goods In Transit And (II)Customs Duties And Charges, And Scheduling Final Hearing
  • Interim Order (I) Establishing Notification Procedures And Approving Restrictions On Certain Transfers Of Claims Against And Interests In The Debtors’ Estates, And (II) Scheduling Final Hearing

As previously discussed, the Interim Insurance Order provides that the automatic stay under section 362(a) of the Bankruptcy Code is modified solely to allow the Debtors’ employees to proceed with their Workers’ Compensation Claims in the appropriate judicial or administrative forum; provided that employees may only pursue their Workers’ Compensation Claims in accordance with the applicable workers’ compensation programs and recoveries, if any, shall be limited to the proceeds from the applicable workers’ compensation programs.

Final hearings on each of the Interim Orders listed above have been scheduled December 22, 2011 at 10:00 a.m. (ET) with objections, if any, due to be filed by December 15, 2011 at 4:00 p.m. (ET). In addition, the Court scheduled the Debtors’ Motion of Debtors for Entry of Order Pursuant to 11 U.S.C. Sections 105(a) and 366 (I) Approving Debtors’ Proposed Form of Adequate Assurance of Payment to Utilities, (II) Establishing Procedures for Resolving Objections by Utility Companies, and (III) Prohibiting Utilities from Altering, Refusing, or Discontinuing Service for hearing on December 22, 2011 at 10:00 a.m. (ET) with objections due by December 15, 2011 at 4:00 p.m. (ET).

Sharon L. Levine
Lowenstein Sandler PC