(a) Conditional Approval of Disclosure Statement. In a small business case, the court may, on application of the plan proponent or on its own initiative, conditionally approve a disclosure statement filed in accordance with Rule 3016. On or before conditional approval of the disclosure statement, the court shall:
(1) fix a time within which the holders of claims and interests may accept or reject the plan;
(2) fix a time for filing objections to the disclosure statement;
(3) fix a date for the hearing on final approval of the disclosure statement to be held if a timely objection is filed; and
(4) fix a date for the hearing on confirmation.
(b) Application of Rule 3017. Rule 3017(a), (b), (c), and (e) do not apply to a conditionally approved disclosure statement. Rule 3017(d) applies to a conditionally approved disclosure statement, except that conditional approval is considered approval of the disclosure statement for the purpose of applying Rule 3017(d).
(c) Final Approval.
(1) Notice. Notice of the time fixed for filing objections and the hearing to consider final approval of the disclosure statement shall be given in accordance with Rule 2002 and may be combined with notice of the hearing on confirmation of the plan.
(2) Objections. Objections to the disclosure statement shall be filed, transmitted to the United States trustee, and served on the debtor, the trustee, any committee appointed under the Code and any other entity designated by the court at any time before final approval of the disclosure statement or by an earlier date as the court may fix.
(3) Hearing. If a timely objection to the disclosure statement is filed, the court shall hold a hearing to consider final approval before or combined with the hearing on confirmation of the plan. (Added Apr. 11, 1997, eff. Dec. 1, 1997; amended Apr. 23, 2008, eff. Dec. 1, 2008.)
added in current removed in current
Compared to current version (2025).
(a) Conditionally Approval ofing a Disclosure Statement. In a small business case, the court may, on applicaThis section (a) applies in a small business case or in a case under Subchapter V of Chapter 11 in which the court has ordered that § 1125 applies. The court may, on motion of the plan proponent or on its own initiative, conditionally approve a disclosure statement filed in accordance withunder Rule 3016. On or before conditional approval of the disclosure statementdoing so, the court shallmust:
(1) fix aset the time within which the claim holders of claims and interest holders may accept or reject the plan;
(2) fix aset the time forto filinge an objections to the disclosure statement;
(3) fix a date forif a timely objection is filed, set the date to hold the hearing on final approval of the disclosure statement to be held if a timely objection is filed; and
(4) fixset a date for the hearing on confirmation.
(b) Application of Rule 3017 hearing.
(b) Effect of a Conditional Approval. Rule 3017(a), (b), -(c), and (e) do not apply to a conditionally approved disclosure statement. Rule 3017(d) applies to a conditionally approved disclosure statement, except that conditional approval is considered approval of the disclosure statement for the purpose of applying Rule 3017(d).
(c) Final Approval.
(1) Notice. Notice of the time fixed for filingBut conditional approval is considered approval in applying Rule 3017(d).
(c) Time to File an Objection; Date of a Hearing.
(1) Notice. Notice must be given under Rule 2002(b) of the time to file an objections and the date of a hearing to consider final approval of the disclosure statement shall be given in accordance with Rule 2002 and. The notice may be combined with notice of the hearing on confirmation of the plan.
(2) Objections. Ohearing.
(2) Time to File an Objection to the Disclosure Statement. An objections to the disclosure statement shallmust be filed, transmitted to the United States trustee, and before it is finally approved or by an earlier date set by the court. The objection must be served on: • the debtor,; • the trustee,; • any committee appointed under the Codeappointed committee; and • any other entity designated by the court at any time before final approval of the disclosure statement or by an earlier date as the court may fix.
(3) Hearingthe court designates. A copy must also be sent to the United States trustee.
(3) Hearing on an Objection to the Disclosure Statement. If a timely objection to the disclosure statement is filed, the court shallmust hold a hearing to consideron final approval either before or combined with the hearing on confirmation of the planhearing. (Added Apr. 11, 1997, eff. Dec. 1, 1997; amended Apr. 23, 2008, eff. Dec. 1, 2008; Apr. 11, 2022, eff. Dec. 1, 2022; Apr. 2, 2024, eff. Dec. 1, 2024.)