MICHAEL A. SHIPP, District Judge.
This matter comes before the Court on Movants David Carlebach and Ettore Annunziata's (collectively, "Movants") Motion to Withdraw Reference of the Chapter 11 proceeding (the "Case") of Richard Annunziata ("Debtor") pending before the Bankruptcy Court. (ECF No. 1.) Defendants Putnam at Tinton Falls, LLC ("Putnam") and Abilheira & Associates (collectively, "Defendants") opposed (ECF No. 12), and Movants replied (ECF No. 16). The Court has carefully considered the parties' submissions and decides the matter without oral argument pursuant to Local Civil Rule 78.1. For the reasons stated below, Movants' Motion to Withdraw Reference is DENIED.
On February 6, 2015, Debtor filed a voluntary petition for relief under Chapter 13 of the United States Code in the United States Bankruptcy Court for the Southern District of New York. (Movants' Mot. ¶ 49, ECF No. 1.) On April 7, 2015, Debtor's Chapter 13 proceeding was converted to a Chapter 11 proceeding. (Id. ¶ 52.) On April 27, 2015, Debtor filed an Adversary Proceeding against Defendants. (Id. ¶ 53.) On October 8, 2015, the Case was transferred from the Southern District of New York to the District of New Jersey. (Id. ¶ 55.) On May 20, 2016, Nancy Isaacson was appointed as Chapter 11 Trustee ("Trustee") in the Case. (Isaacson Cert. ¶ 1, ECF No. 11-1.) On or about August 1, 2016, Trustee filed a motion pursuant to Federal Rule of Bankruptcy Procedure 9019 to approve a settlement reached between Trustee and Defendants involving the distribution of two escrows, which had been the subject of litigation between Debtor and Defendants in the Superior Court of New Jersey and the Bankruptcy Court. (Id., Ex. B, at ¶¶ 2, 20.) Prior to the scheduled hearing on Trustee's motion, on August 24, 2016, Movants filed their Motion to Withdraw Reference. (See generally Movants' Mot.)
Under 28 U.S.C. § 157(d), permissive withdrawal
Additionally, Movants failed to timely serve Trustee with a copy of the moving papers as required by Local Bankruptcy Rule 5011-1(b), which states that "[a] motion to withdraw the reference of a case must be served on all creditors and parties in interest." L. Bankr. R. 5011-1(b). Here, Trustee certified that she was never served with Movants' Motion to Withdraw Reference, and that it was only upon review of an entry on the matter's docket that she became aware of the Motion. (Isaacson Cert. ¶ 3.) Movants do not contend otherwise. To that end, Movants' Motion is wholly unsupported and fails to comply with the Local Bankruptcy Rules.