(a) Unless the court orders otherwise, on filing a petition, a chapter 11 debtor-in-possession shall:
(1) Bank Accounts. Close all bank accounts opened before the filing of the petition. Unless funds on deposit in pre-petition accounts are cash collateral, all funds shall be transferred to new accounts to be opened in the name of the debtor-in-possession at an institution approved by the United States Trustee.
(2) Employee Withholding. Segregate and deposit or pay within the time prescribed by law all funds withheld from employees or collected from others for taxes imposed under the laws of the United States or any state or political subdivision of a state, including without limitation employee withholdings for social security and federal income tax.
(3) New Books of Account. Close its pre-petition books and accounts, and open and maintain new books of account showing all income, expenditures, receipts and disbursements of the debtor while a debtor-in-possession.
(4) Insurance. Insure the estate's property and vehicles against fire, theft, casualty and other loss in an amount no less than the fair market value of the property, and promptly pay premiums for the insurance as they come due. If the debtor is unable to maintain the insurance coverage required by this subsection, it immediately shall notify the court, all creditors with liens on any of the foregoing property, the official unsecured creditors' committee (or creditors holding the twenty largest unsecured claims, if no committee has been appointed), and the United States Trustee. Failure to comply with this subsection may be grounds for conversion or dismissal of the case, for relief from the automatic stay regarding the property, or other appropriate actions or sanctions.
(5) Monthly Reports. On or before the fifteenth day of each month, file monthly reports covering the debtor's operations for the prior month, on forms prescribed and including information required by the United States Trustee. The debtor shall serve copies of the report on the United States Trustee and counsel for the official creditors' committee (or upon each member of the creditors' committee, if the committee does not have counsel). Failure to file monthly reports required under this subsection may be grounds for conversion or dismissal of the case, for sanctions or other appropriate actions. The debtor may apply to the court for relief relating to the duty to file and submit reports or provide other information under this Local Rule.
(6) Avoidance of Administrative Expense. Avoid incurring administrative or priority expenses that cannot reasonably be paid from post petition revenues. The debtor promptly shall inform the court if continuing operation of its business may result in the accrual of administrative expenses that are unlikely to be paid during the reorganization.
(b) A chapter 11 debtor-in-possession shall not compensate any present or former insider within the meaning of 11 U.S.C. §101(31) from estate assets without prior court approval.
(1) A motion to compensate any present or former insider shall recite:
(i) the necessity for retaining the insider;
(ii) the services that the insider will perform on behalf of the estate;
(iii) the amount (including any benefits) that the debtor proposes to pay to the insider, and the terms and conditions of the employment or other undertaking;
(iv) all compensation, benefits and other payments that the insider has received from the debtor in the six months prior to the petition; and
(v) the insider's salary at the date of the petition.
(2) Every insider to receive compensation shall verify the motion.
(3) The debtor shall submit with the motion a proposed order pursuant to Local Rule 9013-5.
(4) The court may grant the motion ex parte if the motion and proposed order have been served on the United States Trustee, all secured creditors or their counsel, counsel for the official creditors' committee (or upon each member of the creditors' committee, if the committee does not have counsel), or if no committee has been appointed, creditors holding the twenty largest unsecured claims.
(5) Any party in interest for cause may move to terminate or modify an order granted ex parte under this subsection. A motion shall be noticed for hearing pursuant to Local Rule 9013-3.