Case Type:
Case Status:
BAP No. CC-18-1075-FLS (9th Circuit, Oct 11,2018) Not Published
BAP for 9th Circuit dismissed appeal of bankruptcy court (CD Cal.) denying debtors' motion to extend exclusivity period for filing chapter 11 plan. Bankruptcy court order was not final, appealable order. Notwithstanding 11 USC 1121(d)'s reference to orders "extending or reducing" the exclusivity period, bankruptcy court merely denied motion to extend. It did not extend or reduce the period. Alternatively, panel treated Notice of Appeal as motion for leave to appeal, and denied motion. Debtors failed to demonstrate cause, or controlling question of law with difference of opinion.
Procedural context:
Six chapter 11 debtors under joint administration jointly moved to extend exclusivity period for filing chapter 11 plan. Bankruptcy court (CD Cal.) denied motion. Debtors appealed to BAP for 9th Circuit.
Six affiliated debtors filed bankruptcy under chapter 11 on August 2, 2017. Bankruptcy court approved joint administration. Exclusivity period expired on November 30, 2017, i.e,., 120 days following petition. On December 1, 2017, Debtors filed motion to extend exclusivity to March 31, 2018. Creditor objected that motion was untimely. Debtors asserted in reply that bankruptcy court's technical outage of CM/ECF prevented timely filing. Creditor filed surreply arguing that Debtors' accompanying declaration was dated December 1, 2017, and several notices of outage, plus ability to manually file, rebutted Debtors' assertion of cause. Bankruptcy court held hearing and ordered additional briefing. Citing out-of-circuit cases, bankruptcy court then ruled that Rule 9006(b)(1) cannot extend a statutory deadline under 11 USC 1121(d), and denied Debtors' motion.
Faris, Lafferty, Spraker

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