Chapter 11 Motion Seeking to Honor Customer Programs (SDNY)

This legal template pertains to a Chapter 11 motion filed in the United States District Court for the Southern District of New York (SDNY) seeking approval to honor customer programs. In the context of bankruptcy proceedings, Chapter 11 refers to the section of the United States Bankruptcy Code that allows businesses to reorganize and continue operations while repaying creditors.

The purpose of this motion is to obtain court approval for a company undergoing Chapter 11 bankruptcy to honor specific customer programs. Customer programs typically include loyalty programs, rewards programs, gift cards, or any other kind of customer benefits or incentives offered by the company. Honoring these programs means the bankrupt company seeks to maintain these customer relationships and preserve customer value during the reorganization process.

Seeking court approval through this Chapter 11 motion is necessary to ensure compliance with bankruptcy laws and protect the rights of all stakeholders involved in the bankruptcy proceedings. It establishes a legitimate framework for the bankrupt company to continue honoring customer programs without running afoul of bankruptcy rules, while also safeguarding the interests of customers and other creditors.

This legal template would likely outline the specific details of the customer programs to be honored, the mechanisms for doing so, and the arguments justifying the importance and benefit of preserving these programs for both the company and its customers. It may also include provisions addressing potential objections, potential outcomes, and various other standard legal elements required by the court in such motions.