First day motions

When a debtor files for Chapter 11 bankruptcy protection, its attorney typically files first day motions. As the name implies, these motions are initiated as soon as possible. The motions are requests to the court to pay certain creditors, so that the organization can continue to operate. Examples of first day motions are to continue to pay employee wages and to pay key suppliers. If this is not done, employee turnover will likely be substantial, while the providers of inventory items, support services, and employee benefits will refuse to deal with the debtor. Most first day motions are approved by the court, so that there is no gap in payments to personnel and essential suppliers.

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