Cluster 1821937

Section 1121(d) provides that these exclusivity periods may be shortened or lengthened for “cause.” “The determination of whether ‘cause’ exists is an issue of fact and the burden of proof to establish cause lies with the moving party.” In re Fountain Powerboat Indus., Inc., Nos. 09-07132-8-RDD, 09-07133-8-RDD, 09-07134-8-RDD, 09-07135-8-RDD, 2009 WL 4738202 , at *2 (Bankr.E.D.N.C.2009) (citing In re Texaco, Inc., 81 B.R. 806, 813 (Bankr.S.D.N.Y.1988)).

“It was intended that at the outset of a Chapter 11 case a debtor should be given the unqualified opportunity to negotiate a settlement and propose a plan of reorganization without interference from creditors and other interests.” In re Texaco, Inc., 81 B.R. 806, 809 (Bankr.S.D.N.Y.1988) (citing H.R.Rep.

The Debtors note that the Plan has been proposed, voted on, and the Confirmation Hearing has been completed within the exclusivity period of Bankruptcy Code § 1121(b), as extended by order of this Court. 42 The purpose of *140 the exclusivity period is to provide a debt- or, at the outset of a chapter 11 case, with “the unqualified opportunity to negotiate a settlement and propose a plan of reorganization without interference from creditors and other interests.” In re Texaco…

In re Texaco Inc., 81 B.R. 806, 810 (Bankr.S.D.N.Y.1988) (Schwartzberg, J.). 8 .

Courts have specified the following factors for determining whether to terminate the exclusivity period: 1) the debtor’s use of exclusivity period to force creditors to accept an unsatisfactory or unconfirmable plan, In re Texaco, Inc., 81 B.R. 806, 812-813 (Bankr.S.D.N.Y.1988); In re Standard Mill Limited Partnership, 1996 WL 521190 (Bankr.D.Minn.1996); 2) the debtor’s delay in filing a plan, In re Eagle-Picher Industries, Inc., 176 B.R. 143, 147 (Bankr.S.D.Ohio 1994); 3) g…

“It was intended that at the outset of a Chapter 11 case a debtor should be given the unqualified opportunity to negotiate a settlement and propose a plan of reorganization without interference from creditors and other interests.” In re Texaco, Inc., 81 B.R. 806, 809 (Bankr.S.D.N.Y.1988) (citing H.R.Rep.

A party in interest which seeks to establish “cause” to terminate the exclusivity period “bears a heavy burden.” Matter of Interco, Inc., 137 B.R. 999, 1000 (Bankr.E.D.Mo.1992) (citing In re Texaco, Inc., 81 B.R. 806, 812 (Bankr.S.D.N.Y.1988)).

In one opinion in which the court refused to shorten the exclusivity period in In re Texaco, Inc., 81 B.R. 806, 813 (Bankr.S.D.N.Y.1988) the court stated that the-burden of establishing cause is on the moving party.

In a case involving a debtor who 1) had a similar respite, 2) had filed a plan providing for payment in full, and 3) sought to use the automatic stay as a sword, the court in Texaco modified the automatic stay to permit an indenture trustee to deliver a notice of acceleration not harming other creditors. 81 B.R. at 806.

See, In re Texaco, Inc., 81 B.R. 806, 807-809 (Bankr.S.D.N.Y.1988), for a detailed description of the above history as well as the court’s refusal to terminate exclusivity altogether on a motion filed by shareholders; as to the history of the case generally, *671 Kirk v. Texaco, Inc., 82 B.R. 678 (S.D.N.Y. 1988); as to confirmation, 84 B.R. 893 (Bankr.S.D.N.Y.1988).

See In re Texaco, Inc., 81 B.R. 806, 812 (Bankr.S.D.N.Y.1988).

See In re Texaco Inc., 81 B.R. 806, 807-808 (Bankr.S.D.N.Y.1988).