Los Angeles Bankruptcy Attorney

TITLE 11 - BANKRUPTCY
CHAPTER 11 - REORGANIZATION
    SUBCHAPTER I - OFFICERS AND ADMINISTRATION

-HEAD-
    Sec. 1108. Authorization to operate business

-STATUTE-
      Unless the court, on request of a party in interest and after
    notice and a hearing, orders otherwise, the trustee may operate the
    debtor's business.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2629; Pub. L. 98-353, title
    III, Sec. 504, July 10, 1984, 98 Stat. 384.)


                       HISTORICAL AND REVISION NOTES                   

                          LEGISLATIVE STATEMENTS                      
      The House amendment adopts section 1108 of the House bill in
    preference to the style of an identical substantive provision
    contained in the Senate amendment. Throughout title 11 references
    to a "trustee" is read to include other parties under various
    sections of the bill. For example, section 1107 applies to give the
    debtor in possession all the rights and powers of a trustee in a
    case under chapter 11; this includes the power of the trustee to
    operate the debtor's business under section 1108.

                         SENATE REPORT NO. 95-989                     
      This section permits the debtor's business to continue to be
    operated, unless the court orders otherwise. Thus, in a
    reorganization case, operation of the business will be the rule,
    and it will not be necessary to go to the court to obtain an order
    authorizing operation.

                          HOUSE REPORT NO. 95-595                      
      This section does not presume that a trustee will be appointed to
    operate the business of the debtor. Rather, the power granted to
    trustee under this section is one of the powers that a debtor in
    possession acquires by virtue of proposed 11 U.S.C. 1107.

                                AMENDMENTS                            
      1984 - Pub. L. 98-353 inserted ", on request of a party in
    interest and after notice and a hearing,".

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-353 effective with respect to cases filed
    90 days after July 10, 1984, see section 552(a) of Pub. L. 98-353,
    set out as a note under section 101 of this title.

-End-