Case No. 05-17923 (pcb).United States Bankruptcy Court, S.D. New York.
September 14, 2005
BRIDGE ORDER PURSUANT TO SECTIONS 105(a), 363(c)(1) AND 364(a) OF THE BANKRUPTCY CODE AUTHORIZING DEBTORS TO (i) CONTINUE TO USE EXISTING CASH MANAGEMENT SYSTEM AND (ii) MAINTAIN EXISTING BANK ACCOUNTS AND EXISTING BUSINESS FORMS
PRUDENCE BEATTY, Bankruptcy Judge
Upon the Emergency Motion of Delta Air Lines, Inc. and those of its subsidiaries that are debtors and debtors in possession (collectively, the “Debtors”),[1] seeking entry of a Bridge Order pursuant to sections 105(a), 363(c)(1) and 364(a) of title 11 of the Bankruptcy Code for authorization to (i) continue to use their existing cash management system and (ii) maintain existing bank accounts and business forms (the “Cash ManagementMotion”),[2] on an interim basis pending the Court’s disposition of the Cash Management Motion after notice and hearing; and it appearing that the relief requested is essential to the continued operation of the Debtors’ business and in the best interest of the Debtors’ estates, creditors and other parties in interest; and it appearing that this Court
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has jurisdiction over this matter pursuant to 28 U.S.C. § 1334; and the Standing Order of Referral of Cases to Bankruptcy Court Judges of the District Court for the Southern District of New York, dated July 10, 1984 (Ward, Acting C.J.); and it appearing that this proceeding is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); and it appearing that venue is proper in this District pursuant to 28 U.S.C. §§ 1408 and 1409; and it appearing that this is a proper expedited hearing, and that therefore no notice need be given; and after due deliberation and sufficient cause appearing therefor, it is
ORDERED that the Debtors are authorized and empowered, pursuant to sections 105(a) and 363(c)(1) of the Bankruptcy Code, to continue to manage their cash pursuant to the global Cash Management System maintained by the Debtors before the commencement of these chapter 11 cases and described in the Cash Management Motion (the “Cash Management System”), to collect, concentrate, disburse and invest cash in accordance with that Cash Management System; and it is further
ORDERED that, pursuant to section 364(a) of the Bankruptcy Code, the Debtors are authorized, in connection with the ordinary course operation of their Cash Management System, to obtain unsecured credit and incur unsecured debt in the ordinary course of business without any further notice or hearing; and it is further
ORDERED that, in accordance with their prepetition practices, the Debtors shall maintain records of all transfers within the Cash Management System to the same extent they were recorded by the Debtors before the commencement of these chapter 11 cases; and it is further
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ORDERED that the Debtors are authorized to continue to maintain the Bank Accounts with the same account numbers following the commencement of these cases; and it is further
ORDERED that the Banks are authorized to continue to treat, service, and administer the Bank Accounts as accounts of the respective Debtor as a debtor in possession without interruption and in the usual and ordinary course and to receive, process and honor and pay any and all post-petition checks, drafts, wires, or ACH Transfers drawn on the Bank Accounts by the holders or makers thereof, as the case may be; and it is further
ORDERED that, notwithstanding anything to the contrary in any other “First Day Order” or other order of this Court, the Banks are authorized to accept and honor all representations from the Debtors as to which checks, drafts, wires, or ACH Transfers should be honored or dishonored, consistent with any order(s) of this Court and governing law, whether such checks, drafts, wires, or ACH Transfers are dated prior to, on, or subsequent to the Petition Date; and it is further
ORDERED that the Banks shall not be liable to any party on account of (a) following the Debtors’ instructions or representations as to any order of this Court, (b) the honoring of any prepetition check or item in a good faith belief that the Court has authorized such prepetition check or item to be honored or (c) an innocent mistake made despite implementation of reasonable item handling procedures; and it is further
ORDERED that, in accordance with current practice and the agreement governing the Bank Accounts, the Banks are authorized to “charge back” to the Debtors’ accounts any amounts incurred by the Banks resulting from returned checks or other returned
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items, and the Debtors are authorized to pay any fees and expenses owed to the Banks, in each case regardless of whether such items were deposited prepetition or postpetition or relate to prepetition or postpetition items; and it is further
ORDERED that any payment from a Bank Account at the request of the Debtors made by a Bank prior to the Petition Date (including any ACH Transfer such Bank is or becomes obligated to settle), or any instruments issued by such Bank on behalf of any Debtor pursuant to a “midnight deadline” or otherwise, shall be deemed to be paid prepetition, whether or not actually debited from the Bank Account prepetition; and it is further
ORDERED that the Debtors are authorized to inform the Foreign Banks of the Motion and Bridge Order through their pre-existing channels of communication, rather than mail notice directly to the Foreign Banks; and it is further
ORDERED that the Debtors are authorized to continue to use their correspondence and business forms, including, but not limited to, purchase orders, letterhead, envelopes, promotional materials and other business forms (collectively, the “BusinessForms”), substantially in the forms existing immediately before the Petition Date, without reference to their status as debtors in possession; and it is further
ORDERED that notwithstanding the possible applicability of rules 6004(g), 7062 or 9014 of the Federal Rules of Bankruptcy Procedures, the terms and conditions of this Order shall be immediately effective and enforceable upon its entry; and it is further
ORDERED that this Order is effective only from the date of entry through this Court’s disposition of the Cash Management Motion after notice and hearing. The
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Court’s ultimate disposition of the Cash Management Motion shall not impair any action taken pursuant to this Order; and it is further
ORDERED that the requirement pursuant to Local Rule 9013-1(b) that the Debtors file a memorandum of law in support of the Emergency Motion is hereby waived.