A Case for Fewer First Day Motions

September 18, 2020

Authored by: Timothy Bow

Chapter 11 petitions usually are accompanied by a panoply of first day motions.  A newly-minted chapter 11 debtor needs to be able to—among other things—pay its employees and continue employee benefits in the ordinary course of business, pay certain prepetition claims, satisfy its obligations to taxing authorities, and maintain its insurance and surety bond programs.  Chapter 11 cases often are also accompanied by motions seeking various forms of procedural relief, including joint administration of multi-debtor cases, relief related to consolidation of the debtors’ creditor matrix and noticing, and a motion seeking additional time within which to file schedules and statements.

Despite the usually large number of first day motions, these motions generally are divided into two buckets:  motions seeking to pay things and motions seeking procedural relief.  It may be then that many of these first day motions are simply extra paper—a small portion of each motion recites a few