Order Approving Settlement Agreement

Summary

This form proposed order is for use by a Chapter 11 debtor in possession filing a motion to approve a settlement and can be modified for use by other parties. This template includes practical guidance, drafting notes, and alternate and optional clauses. This form proposed order may be filed with a Bankruptcy Rule 9019 motion. The local bankruptcy rules in some jurisdictions require that a proposed order be filed and served with the motion. Bankruptcy Rule 9019 provides that the court, after notice and a hearing, may approve a compromise or settlement. Counsel should check the case law and local rules/practices in the debtor's jurisdiction to determine which statutes should be referenced in the order with Bankruptcy Rule 9019 (or whether the rule alone should be cited). Note that some settlements may be straightforward settlements of claims, whether brought by or against the estate. Others may involve complex settlements, particularly if multiple defendants or significant transactions ...