Examples of New Operating Account in a sentence
The following is a graphicalrepresentation of the Postpetition Cash Management System: Newly Created Account Third PartyReceipts Blackjewel West Petty Cash Account (6056) Blackjewel West Operating Account (8511) Revelation Energy Account (9129) Blackjewel East Payroll Account (1966) Blackjewel West Payroll Account (1518) Blackjewel LLC New Operating Account (2824) 1.
Following the Petition Date, the Debtors will direct EDF to transfer such revenue to the New Operating Account (net of certain amounts due and owing from the Debtors to EDF).
More specifically, if the Court authorizes the Debtors to release the funds in the certificate of deposit in that certain bank account at SunTrust Bank, as requested by the SunTrust Cash Collateral Motion, the Debtors plan to transfer a portion of such funds to the Funding Account to make postpetition payments and Court approved prepetition payments until the New Operating Account is open.
The Debtors believe that they can meet their tax obligations and payroll obligations (to the extent the Debtors are deemed to have any such payroll obligations given their arrangement with NAES) most efficiently through the New Operating Account, and requiring new payroll and tax DIP Accounts would be both unnecessary and disruptive to their business.
However, because the Debtors have an immediate need to access their Cash Management System in order to pay their near-term obligations to vendors, utilities, taxing authorities, insurers, and other parties necessary to operate their business, the Debtors seek authority to deposit money into, and disburse money from, La Paloma’s funding account at BONY (the “ Funding Account”)8 until the New Operating Account is open and can be accessed by the Debtors.
In addition, all amounts funded pursuant to and in accordance with the DIP Facility will be deposited into the New Operating Account.
However, consistent with the U.S. Trustee operating guidelines, the Debtors intend to open a new account postpetition—the New Operating Account—and pay all of the Debtors’ postpetition obligations from this account, provided that until the New Operating Account is open the Debtors seek authority to make such payments from the Funding Account (as described above).
This model of Chaitanya devotion is, however, of relatively recent date and of relatively limited following.
I believe the Debtors’ ability to maintain the Cash Management System and implement necessary changes to such system, including opening the New Operating Account, is important to the Debtors’ business operations during the Chapter 11 Cases and theirgoal of maximizing value for the benefit of all parties in interest.
Thus, I believe that the opening of the New Operating Account and the discontinued use of the Prepetition Bank Accounts serves, in large part, the objectives sought to be achieved by the UST Requirements.