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Modification in Assignment of Mega Chapter 11 Cases

Release Date: 
November 22, 2021

Effective December 1, 2021, mega chapter 11 cases will be assigned on a random basis to the bankruptcy judges of this district irrespective of the courthouse in which the case is filed.  As reflected in new subdivision (f) of Local Bankruptcy Rule 1073-1, the text of which appears below, a chapter 11 case qualifies as a “mega” case if the assets or liabilities of the debtor are at least $100 million.  A multi-debtor case qualifies as a “mega” case if the cumulative assets or cumulative liabilities of the filing debtors are at least $100 million.  The attorney will be prompted when electronically filing a chapter 11 petition to indicate whether the assets or liabilities of the debtor(s) meet the $100 million threshold.

Assignment of mega cases to the bankruptcy judges in the district will result in a more balanced utilization of judicial resources.[1]  To accommodate the parties, the assigned judge may hold court in a courthouse other than the courthouse to which they are assigned.

 

  1. Mega Chapter 11 Cases.  Notwithstanding subdivision (a) of this rule, the Clerk shall assign a mega chapter 11 case to a Judge in the District by random selection irrespective of the courthouse in which the case is filed.  A chapter 11 case qualifies as a mega chapter 11 case if the assets or liabilities of the debtor are equal to or greater than $100 million.  A multi-debtor chapter 11 case qualifies as a mega chapter 11 case if the cumulative assets or cumulative liabilities of the filing debtors are equal to or greater than $100 million.

 


[1] The judge assigned to the Poughkeepsie courthouse will take all Chapter 13 cases assigned in the district and will not, at this time, be assigned mega cases.