IN RE CONSECO, INC. (Bankr.N.D.Ill. 2002)

Case No. 02-49672, (Jointly Administered)United States Bankruptcy Court, N.D. Illinois, Eastern Division
December 18, 2002

ORDER UNDER 11 U.S.C. § 105(a), 345, 363, 364, 1107 AND 1108(A) AUTHORIZING THE HOLDING COMPANY DEBTORS TO (i) MAINTAIN EXISTING BANK ACCOUNTS, (ii) CONTINUE TO USE EXISTING CHECKS AND BUSINESS FORMS, (iii) CONTINUE TO USE EXISTING CASH MANAGEMENT SYSTEM, AND (iv) CONTINUE EXISTING INVESTMENT PRACTICES AND (B) GRANTING SUPERPRIORITY STATUS TO POSTPETITION INTERCOMPANY CLAIMS
CAROL A. DOYLE, United States Bankruptcy Judge

Upon the motion (the “Motion”)[1] of Conseco, Inc. and CTIHC, Incorporated, debtors and debtors in possession in the above-captioned Chapter 11 Cases (collectively, the “Holding Company Debtors”) seeking entry of an order under sections 105(a), 345, 363, 364, 1107 and 1108 of title 11 of the Bankruptcy Code (a) authorizing the Holding Company Debtors to (i) maintain existing bank accounts, (ii) continue to use existing checks, correspondence and business forms, (iii) continue to use the existing cash management system, and (iv) continue using the existing Investment Practices and (b) granting superpriority status to postpetition intercompany claims; and it appearing that the relief requested is in the best interests of the Holding Company Debtors’ estates, their creditors and other parties in interest; and it appearing that the Court has jurisdiction to consider the Motion and the relief requested therein in accordance with 28 U.S.C. § 157 and 1334; and it appearing that this matter is a core proceeding within the meaning of 28 U.S.C. § 157(b)(2); and it appearing that venue of this proceeding and this Motion is properly in this district pursuant to 28 U.S.C. § 1408 and 1409; and due and proper notice of the Motion and of the hearing of the Motion having been given under the particular circumstances; and after due deliberation and sufficient cause appearing therefore; it is hereby:

ORDERED that the Motion is granted; and it is further

ORDERED that the Holding Company Debtors are authorized but not directed, in the reasonable exercise of their business judgment, to (i) designate, maintain and continue to use, with the same account numbers, all of the bank accounts in existence on the Petition Date, including, without limitation, those accounts identified on Exhibit A to the Motion (the “Bank Accounts”), (ii) use, in their present form, all checks, correspondence and business forms (including, but not limited to, letterheads, purchase orders, and invoices), as well as checks existing immediately prior to the Petition Date, without reference to their status as debtors in possession, and other documents related to the Bank Accounts, and (iii) treat the Bank Accounts for all purposes as accounts of the Holding Company Debtors as debtors in possession; and it is further

ORDERED that nothing contained herein shall prevent the Holding Company Debtors from opening any new bank accounts or closing any existing bank accounts as they may deem necessary and appropriate in their sole discretion; and it is further

ORDERED that, pursuant to section 364(c)(1) of the Bankruptcy Code, all intercompany Claims arising after the Petition Date owed by an individual Debtor to another individual Debtor incurred in connection with the Service Agreements shall be accorded superpriority status with priority over any and all priorities and claims, including claims relating to administrative expenses of the kind specified in sections 503(b) and 507(b) of the Bankruptcy Code; and it is further

ORDERED that having shown sufficient cause under section 345 of the Bankruptcy Code, the Holding Company Debtors are authorized to invest and deposit funds in accordance with the Investment Practices, notwithstanding that certain of such practices may not strictly comply with the requirements of section 345 of the Bankruptcy Code; and it is further

ORDERED that the form of the letter substantially in the form attached to the Motion as Exhibit B is hereby approved. The Holding Company Debtors shall cause a copy of this Order and the bank letter to be served on all of the banks at which any Bank Account is maintained within five business days of the date hereof; and it is further

ORDERED that the Holding Company Debtors are hereby authorized to take all actions necessary to effectuate the relief granted pursuant to this Order in accordance with the Motion; and it is further

ORDERED that this Court shall retain jurisdiction to hear and determine all matters arising from or related to the implementation of this Order.