Rule 2015.3 Federal Rules of Bankruptcy Procedure
Rule 2015.3 of the Federal Rules of Bankruptcy Procedure is about Reporting Financial Information About Entities in Which a Chapter 11 Estate Holds a Substantial or Controlling Interest. It is under Part II (Officers and Administration; Notices; Meetings; Examinations; Elections; Attorneys and Accountants) of the Rules.
(a) Reporting Requirement; Content of the Report. In a Chapter 11 case, the trustee or debtor in possession must file periodic financial reports of the value, operations, and profitability of each entity in which the estate holds a substantial or controlling interest—unless the entity is a publicly traded corporation or a debtor in a bankruptcy case. The reports must be prepared as prescribed by Form 426 and be based on the most recent information reasonably available to the filer.
(b) Time to File; Service. The first report must be filed at least 7 days before the first date set for the meeting of creditors under
§ 341. Later reports must be filed at least every 6 months, until the date a plan becomes effective or the case is converted or dismissed. A copy of each report must be served on:
· the United States trustee;
· any committee appointed under § 1102; and
· any other party in interest that has filed a request for it.
(c) Presumption of a Substantial or Controlling Interest.
(1) When a Presumption Applies. Under this Rule 2015.3, the estate is presumed to have a substantial or controlling interest in an entity of which it controls or owns at least a 20% interest. Otherwise, the estate is presumed not to have a substantial or controlling interest.
(2) Rebutting the Presumption. The entity, any holder of an interest in it, the United States trustee, or any other party in interest may move to rebut either presumption. After notice and a hearing, the court must determine whether the estate’s interest in the entity is substantial or controlling.
(d) Modifying the Reporting Requirement. After notice and a hearing, the court may vary the reporting requirements of (a) for cause, including that:
(1) the trustee or debtor in possession is not able, after a good-faith effort, to comply with them; or
(2) the required information is publicly available.
(e) Notice to Entities in Which the Estate has a Substantial or Controlling Interest; Protective Order. At least 14 days before filing the first report under (a), the trustee or debtor in possession must send notice to every entity in which the estate has a substantial or controlling interest—and all known holders of an interest in the entity—that the trustee or debtor in possession expects to file and serve financial information about the entity in accordance with this Rule 2015.3. Any such entity, or person holding an interest in it, may request that the information be protected under § 107.
(f) Effect of a Request. Unless the court orders otherwise, a pending request under (c), (d), or (e) does not alter or stay the requirements of (a).
