18-13341 (Western District of Wisconsin)
Debtor’s opposed first motion under section 1121 to extend the exclusivity periods to file and obtain acceptance of a chapter 11 plan of reorganization granted based in part on pending cross-motions for summary judgment in a preference action asserted to be fundamental to the Debtor’s formulation of a plan. Rejecting suggestion that litigation must be resolved before a plan can be proposed or creditors provided adequate information to decide whether to accept or reject it, here the litigation may have a drastic impact on assets available to fund reorganization and on the allocation of payments to creditors. Finding further that objector failed to show that the extension request was made for dilatory purposes or to obtain undue leverage or that creditors’ interests are not adequately protected.