United States Bankruptcy Court

for the

Northern District of California

1300 Clay Street, Courtroom 215

Oakland, California 94612

Charles Novack                                                               Telephone: (510) 879-3525

United States Bankruptcy Judge                                       Facsimile: (510) 879-3524

CHAPTER 11 STATUS CONFERENCE CHECKLIST

The Purpose Of The Status Conference

• To review the court's expectations regarding management of the case.
• To begin developing a schedule for the case

Complying With The Requirements Of The Bankruptcy Code And Rules

The court expects strict compliance with the Code and Rules.  Failure to comply with the following requirements often leads to an early conversion of the case:

• Monthly Operating Reports.  Bankruptcy Local Rule 2015-2 requires monthly operating reports and tax reports to be filed on the 20^th day of each month.
• Quarterly United States Trustee Fees.  28 U.S.C. § 1930(a)(6) requires a quarterly fee to be paid to the United States Trustee. 
  
  The amount of the fee will depend upon the amount of disbursements made by the debtor during each quarter.
• Cash Collateral.  11 U.S.C. § 363(c)(2) prohibits the use of cash collateral unless the debtor has either the consent of each creditor having an interest in the collateral or an order from the court.
• Ordinary Course of Business.  11 U.S.C. § 363(c)(1) authorizes the debtor to enter into transactions in the ordinary course of business without notice and a hearing.  If not in the ordinary course of business, notice and a hearing is required.
• Post Petition Taxes.  The court expects all post petition taxes to be paid timely and all required tax returns to be timely filed.
• Funds of the Estate.  Bankruptcy Local Rule 2015-1 requires all estate funds to be deposited and maintained in a debtor-in-possession (DIP) bank account.

Developing A Schedule For The Case

How much time will the court give the debtor to reorganize?

• The debtor will be given a reasonable time to reorganize.  How much time is reasonable depends on the circumstances of the case, the debtor's compliance with the Bankruptcy Code and Rules and the debtor's progress toward a successful reorganization.

What is the reorganization goal?       

            Generating cash for creditors by the sale of some or all of the debtor's assets.

            Raising cash through borrowing or an infusion of capital such as a sale of stock.

            Becoming profitable and paying creditors through future profits.

When is a reorganization plan and disclosure statement likely to be filed?

The reorganization case will normally be terminated by a dismissal or conversion of the case to Chapter 7 and the liquidation of assets by a trustee.  Dismissal or conversion normally occurs as a result of a motion brought by one of the creditors or the Unites States Trustee.