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Current decisions, news and commentary regarding commercial bankruptcy cases in Delaware.

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The Delaware Bankruptcy Court's Annual Amendment to the Local Rules Is Available

The Local Rules for the United States Bankruptcy Court District of Delaware have been amended.  The amended Local Rules went into effect as of February 1, 2018.  The amended Local Rules may be found on the Bankruptcy Court's website or here.  

A red-line to the 2017 rules is also available on the Bankruptcy Court's website or here.  A few of the more substantive amendments are discussed below:

There is a new Rule 3017-3 providing that in all chapter 11 cases, objections to a disclosure statement or plan confirmation shall not exceed forty pages and briefs shall not exceed sixty pages.

New Rule 7001-1 (Scope of Rules - Adversary Proceedings) provides a procedure when seeking to deviate from the Federal Rules of Civil Procedure, the Federal Rules of Bankruptcy Procedure or the District Court's Rules or the Local Rules governing Adversary Proceedings.  Of relevance:

* The good faith reason(s) for the requested deviation must be provided (Rule 7001-1(a)(i)(B));

* Service of the motion on all parties in the adversary proceeding(s) (Rule 7001-1(a)(ii));

* Such a motion cannot be scheduled for a hearing prior to the initial scheduling conference (Rule 7001-1(iii)); and

* The requested relief only applies to the specific adversary proceeding(s) in which the motion is filed (Rule 7001-1(iv).

Finally, the Court's mediation program, as governed by Local Rule 9019-5,  is no longer limited to preference cases, but has been extended to avoidance proceedings seeking recovery under 11 U.S.C. §§ 547, 548 and/or 550.  This is an important addition for defendants in fraudulent conveyance matters, who would need to elect to opt-in to the mediation procedures within 28 days after the date that the defendant's response is due under the Summons.