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Local Rule 2015-2(a) provides that "[w]here the debtor uses pre-printed checks, upon motion of the debtor, the Court may, without notice and hearing, permit the debtor to use its existing checks without the designation 'Debtor-in-Possession' [until] the debtor's existing checks have been used." Parties doing business with the Debtor undoubtedly will be aware of the Debtor's status as a chapter 11 debtor in possession. Additionally, the Debtor does not print its own business forms and stationery. Thus, substantial time and expense would be required if the Debtor were required to print new business forms and stationery merely to indicate "debtor in possession." Changing the business forms at this critical, early stage of its chapter 11 cases would be expensive and burdensome to the Debtor's estate and present an unnecessary distraction, extremely disruptive to the Debtor's business operations.
30. Additionally, the Debtor requests a waiver of the strict application of the requirements of section 345 of the Bankruptcy Code. All of the Debtor's Bank Accounts are federally insured, but may on occasion exceed the federally insured limit of $100,000. Given that these are business accounts, however, and considering the stability of the Debtor's bank, such funds are not at risk. The Debtor respectfully requests authority to maintain its cash in the Bank Accounts in a safe and prudent manner, in accordance with its existing practices. Local Rule 2015-2(b) provides that if a motion for a waiver under section 345 of the Bankruptcy Code is filed on the first day of the case, and there are more than 200 creditors, the court may grant an interim waiver. The Debtor seeks an interim order, and upon notice and a hearing (if any objections thereto), the entry of a final order.
31. By preserving business continuity and avoiding the operational and administrative paralysis that changing the cash management system, bank accounts, and business forms would necessarily entail, all parties in interest will be best served and the Debtor will benefit considerably from the relief requested in the motion.
Debtor's Motion for Authority to Pay Prepetition Wages, Compensation and Employee Benefits
32. The Debtors seek authority to pay certain prepetition obligations owing to the Debtors' employees, including, but not limited to, (i) amounts owed to employees for wages and salaries; (ii) reimbursement of employee business expenses incurred in the ordinary course, such as travel, meals and lodging; (iii) maintenance of employee health and welfare plans, workers' compensation, 401(k), and other similar benefits; and (iv) other miscellaneous employee expenses and benefits (collectively, the "Prepetition Employee Obligations"). The Debtors seek authority to honor Prepetition Employee Obligations as payment of such obligations is critical and essential to employee morale and future business needs.
33. The Debtor employs approximately 229 employees in the United States. The Debtor seeks to be authorized, but not directed, to honor all outstanding payroll obligations. The Debtor's employees are paid bi-monthly on a current basis. The Debtor's bi-monthly payroll averages approximately $987,000 in the aggregate. The Debtor's last regular payroll date was May 31 (the "Last Payroll"). The Debtor estimates that approximately 80% of its employees have direct deposit. The remaining employees are paid on checks issued through ADP, a third-party provider. The Debtors pay ADP prior to the issuance of payroll checks to the Debtor's employees. ADP then pays the Debtor's employees from ADP's accounts. The Debtors anticipate that, due to the large number of employees receiving direct deposit and the issuance of payroll checks from ADP's accounts, that its employees will experience no interruption in payroll. Moreover, no payroll amounts are past due. However, the Debtor seeks relief to pay any pre-petition payroll amounts in the abundance of caution.
A. Vacation, Paid Time Off, and Sick Leave
34. In addition to wages and salary, certain of the Debtor's employees accrue paid vacation time, paid time off, and/or paid sick time based on length of service. The Debtor intends to permit remaining employees to continue to use any such accrued but unused time off in the ordinary course.