The provisions in this subdivision apply to any chapter 11 plan and disclosure statement filed by a small business debtor.
(A) Procedures for Conditional Approval of Disclosure Statement. Upon filing a plan and disclosure statement, a combined plan and disclosure statement or a plan that contains the disclosures required by 11 U.S.C. §1125(a) (each being referred to as a “Proposed Disclosure Document”), the plan proponent shall serve a copy of the Proposed Disclosure Document on the U.S. Trustee and each party in interest that is entitled to receive a copy thereof, together with a notice that objections based on inadequate disclosure under Bankruptcy Code §1125(a), must be filed within 14 days after service of the Proposed Disclosure Document. If no objection is filed within 14 days after service of the Proposed Disclosure Document, and the court does not otherwise determine to set a hearing on approval, the court may issue its “Order (I) Conditionally Approving Proposed Disclosure Document; (II) Setting Hearing on Final Approval of Proposed Disclosure Document and Confirmation of Plan; (III) Setting Hearing on Fee Applications; (IV) Setting Various Deadlines and (V) Describing Plan Proponent’s Obligations” which the plan proponent shall serve as provided under subdivision (B) below. If an objection to the adequacy of the Proposed Disclosure Document is timely filed, the court may, in its sole discretion, enter the order described in this subparagraph, or set a final hearing to determine the adequacy of the Proposed Disclosure Document prior to transmission of the plan pursuant to Bankruptcy Rule 3017(d).
(B) Combined Hearing on Approval of the Disclosure Statement and Confirmation of the Plan. If a plan proponent files with this court a separate chapter 11 plan and disclosure statement, or a combined chapter 11 plan and disclosure statement, the form of which has been approved for use in small business cases by this court, then the plan proponent may request that the court combine the hearing on approval of the disclosure statement with the hearing on confirmation of the chapter 11 plan. Upon approval of the request and entry of an “Order (I) Setting Hearing on Approval of the Disclosure Statement and Confirmation of Plan; (II) Setting Hearing on Fee Applications; (III) Setting Various Deadlines; and (IV) Describing Plan Proponent’s Obligations”, the plan proponent shall serve the foregoing order on the parties required by Bankruptcy Rule 3017(d), along with a ballot in the form required by Local Rule 3018-1, on all creditors and equity security holders entitled to vote on the plan, as well as the U.S. Trustee. The order shall schedule a hearing on confirmation no later than 30 days from its issuance. Objections to the disclosure statement based on inadequate disclosure under Bankruptcy Code §1125(a), or to confirmation of the chapter 11 plan under §§1122, 1123, 1124, 1126, 1127 or 1129 of the Bankruptcy Code, shall be filed with the court within three business days prior to the confirmation hearing. Even if no timely objections are filed, the court shall proceed with the confirmation hearing at the scheduled date and time. The proponent of the plan must serve the customized ballot and instructions via U.S. mail on all parties who have received the order and copies of the plan and disclosure statement electronically.
[Comment: The small business debtor who elects to use the court approved forms for small business plans and disclosure statements, or a combined court approved form, may follow the procedure described in Local Rule 3017-2(B) and bypass the process described in Local Rule 3017-2(A). All other plans that include disclosure information, whether or not titled as a combined plan and disclosure statement, or plans and disclosure statements filed separately, will be subject to the approval procedure set forth in Local Rule 3017-2(A). See also Bankruptcy Rules 2002(b) and (d) and 3017(a) and (d) and Local Rule 2002-1(C)(8) (service of plan, disclosure statement, ballot, and local form order required) and Bankruptcy Rules 2002(k) and 9034 (service on U.S. Trustee required). See also Local Rule 2002-1(C)(9) (service of notice of fee applications).]