Motion to Terminate Exclusivity

Summary

This motion to terminate exclusivity template is for use in a Chapter 11 bankruptcy case. This template includes practical guidance, drafting notes, alternate, and optional clauses. Pursuant to Section 1121(b) of the Bankruptcy Code, only the debtor has the exclusive right to file a plan of reorganization or liquidation during the first 120 days of the bankruptcy case. The debtor also has the exclusive right, pursuant to Section 1121(c), to obtain acceptances of a plan that was filed within the first 120 days until 180 days of the filing of the bankruptcy case. These periods are referred to as the debtor's exclusivity period. Pursuant to Section 1121(d), the exclusivity periods for filing a plan and obtaining its approval can be extended for a maximum period of up to 18 months and 20 months, respectively, after the filing of the bankruptcy case, upon a showing of cause. Under Section 1121(d)(1), a party in interest may request, for cause, termination of the debtor's 120-day or 180-day exclusivity period or any extended period. If the court terminates exclusivity, does not grant the request to extend exclusivity, or the debtor or another party in interest does not make such a request, a non-debtor party in interest may then file its plan. Note that the rules differ for Subchapter V and small business Chapter 11 debtors. For information on such rules, see Chapter 11 Small Business Debtor and Subchapter V Confirmation Requirements. For a full listing of key content when litigating disputes in bankruptcy cases, see Bankruptcy Litigation Resource Kit. For more information on exclusivity, extension or termination of exclusivity, and plans filed by parties-in-interest, see Parties That May File Plans and Plan Exclusivity and Termination under Chapter 11 Proceedings — Chapter 11 Plan. For a checklist on requesting an extension or termination of the exclusivity period, see Extension or Termination of Exclusivity Checklist.