"Stabilizing the debtor's business in chapter 11" [2019] ELECD 2091; in Lubben, Stephen (ed), "American Business Bankruptcy" (Edward Elgar Publishing, 2019) 101

Book Title: American Business Bankruptcy

Editor(s): Lubben, Stephen

Publisher: Edward Elgar Publishing

Section: Chapter 12

Section Title: Stabilizing the debtor’s business in chapter 11

Number of pages: 14

Abstract/Description:

Filing for bankruptcy, even under chapter 11, draws a line in time between pre- and post-bankruptcy claims. But to stabilize the debtor’s business and allow it to enter chapter 11 with the least amount of disruption, it is often necessary to blur that line. Chapter 11 practice has developed a system of first-day motions that facilitate this process. Another motion, under section 366, attempts to shape the debtor’s relationship with utility companies. Once these relatively routine motions are heard, the court will often hear one of the most important first-day motions: a motion to approve debtor-in-possession (or DIP) financing.