Critical Vendor Motion
(Debtor)

Summary

This critical vendor motion template is for use by debtors seeking entry of an interim and final order authorizing the debtors to pay certain prepetition claims to critical vendors. This template includes practical guidance and drafting notes. Chapter 11 debtors often file a motion to pay pre-petition claims of critical vendors on the first day of the bankruptcy case along with the other first day motions necessitating immediate relief. Court approval is generally needed to pay a critical vendor's pre-petition claim prior to confirmation. Debtors normally argue that a critical vendor motion should be granted because certain vendors will refuse to provide essential goods or services unless such vendors receive payment for the amounts owed prior to the bankruptcy filing. The debtor will also typically need to procure an agreement with the vendor to, among other things, protect against the vendor materially altering the terms by which it provides these goods and services. This template can be used for prepackaged, prearranged, or standard Chapter 11 bankruptcies. For more information on critical vendor motions, see First Day Motions to Pay Critical Vendors. For information and resources on other first day filings and when representing a debtor that is filing for Chapter 11, see First Day Filings and Filing for Chapter 11 Bankruptcy Resource Kit. For a full listing of key content that provides an overview of important topics when litigating disputes in bankruptcy cases, see Bankruptcy Litigation Resource Kit.