First Day Motions to Pay Critical Vendors

Summary

This practice note discusses the filing of a motion to pay pre-petition claims of critical vendors (Critical Vendor Motion). Debtors normally argue that a Critical Vendor Motion should be granted because certain vendors will refuse to provide essential goods or services unless they receive payment for the amounts owed prior to the bankruptcy filing. The relief is therefore warranted as the debtor's operations will be severely disrupted without such goods or services. Critical Vendor Motions are typically filed on the first day of the bankruptcy proceeding along with the other first day motions necessitating immediate relief.