First Day Motions

First day motions are filed on (or close to) the first day of a chapter 11 case—usually presented on an emergency basis—to grant a debtor relief from the restrictions of the Bankruptcy Code that otherwise inhibit the debtor’s ability to operate in the ordinary course of business.

The relief sought by First Day Motions ensures that a chapter 11 debtor can continue operating its business with as little interruption as possible to achieve its goals in chapter 11.

Common first day motions include requests for orders that allow a chapter 11 debtor to do things like: use encumbered cash or borrow money on a postpetition basis; maintain cash management systems; continue paying employee wages and maintaining benefits programs; continue utility services; pay prepetition taxes; pay prepetition insurance amounts; and other administratuve functions within the chapter 11 case.

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