Statutory text
11 U.S.C. App. (FEDERAL RULES OF BANKRUPTCY PROCEDURE) Rule 3017.1
(a) Conditionally Approving a Disclosure Statement . This section (a) 1 1 So in original. Probably should be “This subdivision (a)”. applies in a small business case or in a case under Subchapter V of Chapter 11 in which the court has ordered that § 1125 applies. The court may, on motion of the plan proponent or on its own, conditionally approve a disclosure statement filed under Rule 3016.
On or before doing so, the court must: (1) set the time within which the claim holders and interest holders may accept or reject the plan; (2) set the time to file an objection to the disclosure statement; (3) if a timely objection is filed, set the date to hold the hearing on final approval of the disclosure statement; and (4) set a date for the confirmation hearing. (b) Effect of a Conditional Approval . Rule 3017(a)–(c) and (e) do not apply to a conditionally approved disclosure statement.
But conditional approval is considered approval in applying Rule 3017(d). (c) Time to File an Objection; Date of a Hearing. (1) Notice . Notice must be given under Rule 2002(b) of the time to file an objection and the date of a hearing to consider final approval of the disclosure statement. The notice may be combined with notice of the confirmation hearing. (2) Time to File an Objection to the Disclosure Statement .
An objection to the disclosure statement must be filed before it is finally approved or by an earlier date set by the court. The objection must be served on: • the debtor; • the trustee; • any appointed committee; and • any other entity the court designates. A copy must also be sent to the United States trustee. (3) Hearing on an Objection to the Disclosure Statement .
If a timely objection to the disclosure statement is filed, the court must hold a hearing on final approval either before or combined with the confirmation hearing.
