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2021 Stroock Bankruptcy Guide

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30 See In re Enron Corp., 281 B.R. 836 (Bankr. S.D.N.Y. 2002) (enumerating the distinctions between a Rule 2004 examination and discovery under the Federal Rules of Civil Procedure). Most courts accept that "once an adversary proceeding or contested matter is commenced, discovery should be pursued under the Federal Rules of Civil Procedure and not Rule 2004." Id. at 840; see also In re Drexel Burnham Lambert Grp., Inc., 123 B.R. 702, 711 (Bankr. S.D.N.Y. 1991). However, some courts do not consider pending litigation a relevant factor in a decision to allow a Rule 2004 Examination. See In re Analytical Sys., Inc., 71 B.R. 408, 413 (Bankr. N.D. Ga. 1987). It is less evident, however, that a party's right to the protections afforded by the Federal Rules of Civil Procedure exists prior to the initiation of litigation. See In re Recoton Corp., 307 B.R. 751, 756 (Bankr. S.D.N.Y. 2004); In re Mirant Corp., 326 B.R. 354, 356–57 (Bankr. N.D. Tex. 2005) (observing that the language of Bankruptcy Rule 2004 is "not limited to exclude instances where the litigation is, or may soon be, pending . . . ."). The key distinction seems to be whether the Bankruptcy Rule 2004 examiner seeks discovery to determine whether viable claims against the examinee exist or to obtain information that it already intends to use against the examinee in a subsequent proceeding. Similar concerns arise when courts confront situations where the party seeking a Rule 2004 Examination could benefit from such examination in litigation pending against the examinee outside of the bankruptcy court. See In re Enron Corp., 281 B.R. at 842. 2. Meetings of Creditors Section 341 of the Bankruptcy Code requires the U.S. Trustee to convene and preside at a meeting of creditors within a reasonable time after the date of the order for relief. 11 U.S.C. § 341(a). In a Chapter 7 liquidation or Chapter 11 reorganization case, such meeting must be held between twenty-one days and forty days after the date of the order for relief. F ED. R. BANKR. P.

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