In re: RUFUS, INC., Chapter 11, Debtor.

FINAL ORDER PURSUANT TO 11 U.S.C. 105(a), 366, 503(b) AND 507(a)(1) OF THE BANKRUPTCY CODE (i) PROHIBITING UTILITIES FROM ALTERING, REFUSING OR DISCONTINUING SERVICES ON ACCOUNT OF PREPETITION CLAIMS, (ii) DEEMING THE UTILITY COMPANIES ADEQUATELY ASSURED OF FUTURE PERFORMANCE, AND (iii) ESTABLISHING PROCEDURES FOR DETERMINING REQUESTS FOR ADDITIONAL ADEQUATE ASSURANCE

MARY WALRATH, Bankruptcy Judge

Upon consideration of the motion (the "Motion") of the Debtor, for entry of an order, pursuant to sections 105(a), 503(b), 507(a)(1) and 366: (i) prohibiting the Utility Companies from altering, refusing or discontinuing Utility Services on account of prepetition claims, (ii) deeming the Utility Companies adequately assured of future performance, and (iii) establishing procedures for determining requests for additional adequate assurance as more fully set forth in the Motion; and upon consideration of the Declaration of Donald C. Jones in Support of the Chapter 11 Petition and First Day Motions [Docket No. 4]; and the Court having jurisdiction to consider the Motion and the relief requested therein in accordance with 28 U.S.C. §§ 157 and 1334; and due notice of the Motion having been given; and it appearing that no other or further notice need be provided; and it appearing that the relief requested by the Motion is in the best interest of the Debtor, its estate, its creditors and other parties in interest; and after due deliberation and sufficient cause appearing therefor, it is hereby

Unless otherwise defined herein, all capitalized terms shall have the meanings ascribed to them in the Motion.

ORDERED, that the Motion is granted; and it is further

ORDERED, that the Debtor is authorized to pay on a timely basis in accordance with its prepetition practices all undisputed invoices in respect of postpetition Utility Services rendered by the Utility Companies to the Debtor; and it is further

ORDERED, that any undisputed charge for Utility Services furnished by a Utility Company to the Debtor following the commencement of this case shall constitute an administrative expense of the Debtor's chapter 11 case in accordance with sections 503(b) and 507(a)(1) of the Bankruptcy Code; and it is further

ORDERED, that absent any further order of this Court, the Utility Companies are prohibited from altering, refusing, or discontinuing service to, or discriminating against, the Debtor, or requiring the payment of a deposit or other security in connection with a prepetition invoice for Utility Services, including, but not limited to, the furnishing of gas, electric, water, telephone, or any other utility of like kind, furnished to the Debtor; and it is further

ORDERED, that the Debtor will serve this Order on the Utility Companies within five (5) business days of its entry on the Court's docket (the "Date of Entry"); and it is further

ORDERED, that a Utility Company may request additional assurances of payment in the form of deposits or other security within thirty (30) days of the Date of Entry (an "Additional Assurance Request"). If the Debtor believes that any Additional Assurance Request is unreasonable and is unable to reach a compromise with the applicable Utility Company, the Debtor will promptly schedule a hearing with the Court to determine if additional assurances are necessary (the "Determination Hearing"); and it is further

ORDERED, that any Utility Company that does not timely request additional assurance shall be deemed to have adequate assurance under section 366 of the Bankruptcy Code; and it is further

ORDERED, that any Additional Assurance Request must (i) be made within the time required herein, (ii) be made in writing, (iii) set forth the location for which utility services are provided, and (iv) include a summary of the Debtor's payment history relevant to the affected account(s), including any security deposits previously provided by the Debtor; and it is further

ORDERED, that pending resolution of any such Determination Hearing, any objecting Utility Company shall be prohibited from discontinuing, altering, or refusing service to the Debtor on account of any unpaid charges for pre-petition services; and it is further

ORDERED, that nothing in this Order shall be deemed to affect any burden of proof that either the Debtor or any Utility Company may have at the Determination Hearing, and its is further

ORDERED, that if any Utility Company timely submits an Additional Assurance Request that the Debtor believes is reasonable, then the Debtor shall be entitled to comply with such request, as contemplated by the Motion, without further notice or order of the Court; and it is further

ORDERED, that any Utility Company that does not timely request additional assurance shall be deemed to have adequate assurance under section 366 of the Bankruptcy Code; and it is further

ORDERED, that nothing in this Order or the Motion shall be deemed to constitute the postpetition assumption or adoption of any agreement pursuant to section 365 of the Bankruptcy Code; and it is further

ORDERED, that this Court shall retain jurisdiction with respect to all matters arising from or related to the implementation or interpretation of this Order.

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IN RE RUFUS, INC. (Bankr.D.Del. 2005)
(Sep 7, 2005)