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Chapter 11 Closing Procedures

Applicable to chapter 11 cases in which substantial consummation has been completed.

SUMMARY

This procedure outlines the steps to be followed in chapter 11 cases in which an Order Confirming a Plan has been entered and substantial consummation has been completed. In a chapter 11 case, substantial is defined in 11 U.S.C. §1101 (2) which reads:

“Substantial consummation” means -

(A)    transfer of all or substantially all of the property proposed by the plan to be transferred;

(B)    assumption by the debtor or by the successor to the debtor under the plan of the business or of the management of all or substantially all of the property dealt with by the plan: and

(C)    commencement of distribution under the plan.

Procedure

All pending motions, contested matters, fee applications and adversary proceedings must be resolved 180 days after confirmation of the plan. When the plan is confirmed, the Clerk’s office will send this package to the debtor in possession. Within six months of the confirmation of the plan, the debtor shall prepare the Final Report and the Final Account of the administration of the estate pursuant to §1106 (a) (7). The Final Report should incorporate a Motion for Final Decree. {FRBP 3022}. A proposed Final Decree should also be submitted.

Final Report and Motion for Final Decree

The Final Report should be a commentary on the progress made in implementing the plan, should relate directly to 11 USC §1101 (2), and should demonstrate to the Court that substantial consummation has been completed. The Motion for Final Decree should state that the plan has been substantially consummated.

Final Account

The Final Account of the administration of the estate is a summary of the fees and expenses awarded by the Court and the claims allowed at the time of confirmation.

Final Decree

The proposed Final Decree should contain a finding that substantial consummation has been completed and any special provisions covered in the Motion for Final Decree.