Case Summary:
The Wisconsin Department of Natural Resources moved to dismiss the case and alleged that the debtor had not obtained confirmation of a plan within the time periods required in a small business case. The plan was filed in a timely fashion and the first hearing on confirmation occurred within 45 days of the filing of the plan. The confirmation hearing was adjourned several times, although the debtor did not file a formal motion to extend the time for confirmation. The court found that the adjournments occurred prior to the expiration of the existing deadline, parties in interest had sufficient opportunity to object to any extension, and all parties acquiesced to the adjournments. The code does not require a formal motion but simply a “demonstration” that a plan is likely to be confirmed within a reasonable time. The motion to dismiss was denied. Reversed and remanded on appeal.

Statute/Rule References:
11 U.S.C. § 1121(e)(3)(A)
11 U.S.C. § 1129(e) -- Confirmation of Small Business Case

Key Terms:
Confirmation of Plan (Small Business Chapter 11)