Rule 1015-1 : Joint Administration


(a) Motions: On motion of any party in interest, on notice to the United States trustee, any case trustee, and such further notice as the court may direct, separate cases enumerated in FED. R. BANKR. P. 1015(b) may, upon order of the court, be jointly administered.

(b) Any motion for joint administration pursuant to FED. R. BANKR. P. 1015(b) involving two or more petitions pending in the same court by or against (i) a partnership and one or more of its general partners, (ii) two or more general partners, or (iii) a debtor and an affiliate must include a short and concise statement setting forth the reasons that granting the motion for joint administration will aid in expediting the administration of the cases and rendering the process less costly.

(c) Order: Parties seeking joint administration must submit a proposed order in substantial conformity with L.B. Form 1015-1.1.

(d) Notice: When an order granting joint administration is entered, the Clerk, or such other person as the court may direct, must provide notice to all creditors and parties in interest that the administrative procedures listed below apply. The court may, in its discretion, order that the debtor(s) maintain a comprehensive service list of creditors from all jointly administered estates.

(1) Unless otherwise ordered, jointly administered cases will be reassigned to the judge to whom the lower-numbered (first) case was assigned. The lower- numbered case will be known as the “lead case.”

(2) Unless otherwise ordered, all motions, pleadings, and other documents filed in the jointly-administered case shall bear a combined caption which includes the full name and number of each specific case as in Official Bankruptcy Form 16A, and must be filed, docketed and processed in the lead case, except for the following:

(A) a motion which applies to less than all jointly administered debtors must clearly indicate in the caption and title to which debtor(s) the motion applies, but must still be filed in the lead case;

(B) all proofs of claim must be filed in the specific case to which they apply;

(C) monthly financial reports must be filed in the specific case to which they apply; and

(D) amendments to schedules, statements, lists and other required documents in FED. R. BANKR. P. 1002 and 1007 must be filed in the specific case to which the amendments apply.

(e) This L.B.R. does not affect the substantive issues of the jointly-administered estates, either individually or collectively, nor does it affect the requirements of FED. R. BANKR. P. 2009.

Commentary

[Source: L.B.R. 115; GPO 2013-1] January, 1, 2014.

This L.B.R. is intended to deal with joint administration, as opposed to substantive consolidation.

The Court will not approve joint administration if the Court anticipates that joint administration will have an adverse impact on the substantive rights of the claimants, other interested parties, and the respective debtor estates.

By way of example, issues that may impact substantive rights in joint administration include:

  1. Confusion in cash management, including obtaining credit pursuant to 11 U.S.C. § 364 and use of cash collateral under FED. R. BANKR. P. 4001. Counsel for jointly administered debtors must ensure that cash management between and amongst debtors respects corporate distinctions.

  2. Failure by counsel for the debtor(s) to properly allocate fees and costs to the applicable debtor. Fee applications filed in jointly administered cases must designate the entity to which the fees and costs are attributable.

  3. Notification to claimants and other interested parties of claims filing and management amongst affiliated debtors. Counsel for jointly administered debtors must, consistent with L.B.R. 1015-1(d)(2)(B), take appropriate steps to notify creditors and other interested parties of the entity to which their claim may be applicable.