Chapter 11

Fees for Defending Fees – Recent Rulings Permit Contractual Circumvention of Supreme Court’s Baker Botts v. Asarco Decision

10/05/17

The Supreme Court two years ago ruled in Baker Botts v. Asarco that bankruptcy professionals entitled to compensation from a debtor’s bankruptcy estate had no statutory right to be compensated for time spent defending against objections to their fee applications.  Since then, “estate professionals,” i.e., those retained in a bankruptcy case by a trustee, debtor in possession or an official committee of creditors, have sought ways to limit the potentially harsh impact of that decision.

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Nortel Judge Rejects Noteholders’ Challenge to Indenture Trustee’s Fees

03/15/17

Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware handed down an important ruling last week that turned aside most of an unusual challenge to the fees and expenses of an indenture trustee in the long-running Nortel chapter 11 case.  The dispute has been watched closely by financial institutions that serve as trustees on bond issuances.  (Kelley Drye & Warren LLP represented a large creditor in the Nortel case but took no part in the issues discussed here).

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Delaware Bankruptcy Judge: A Carve-Out for Fees Is Not a Cap

01/31/17

Judge Christopher Sontchi recently issued an important opinion in the Molycorp chapter 11 case.  He held that a standard carve-out in a financing order for the fees of counsel and other professionals for an official creditors’ committee will not later limit the ability of such professionals to be paid in full under a confirmed plan of reorganization.  As with

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Punt, Pass or Kick? Supreme Court Struggles With Jevic at Oral Argument

12/09/16

The U.S. Supreme Court heard oral arguments this week in the case of Czyzewski v.

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Jevic Could Be the Most Consequential Chapter 11 Decision in Many Years

10/14/16

The U.S. Supreme Court will hear the case of Czyzewski v. Jevic Holding Corp. during the new term that began last week.  The questions it presents are relatively simple.  First, can a bankruptcy court, in dismissing a case under the U.S.

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Arizona District Court Applies Section 1129(a)(10) on a Per Plan Basis

08/07/16
One challenge in confirming a chapter 11 plan is finding an impaired accepting class without counting votes of insiders as required by 11 U.S.C. Sec. 1129(a)(10).   A new opinion from the District Court of Arizona makes that job easier in cases with jointly administered debtors.   In re Transwest Properties, Inc., 2016 U.S. Dist. LEXIS 102575 (D. Ariz. 6/22/16).  
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Southern District of Georgia: Absolute Priority Rule Applies In Individual Chapter 11 Cases

07/06/16

ch 11After a hearing on the approval of a disclosure statement, Judge Edward J. Coleman of the Middle District of Georgia ruled that the absolute priority rule and new value exception apply in individual Chapter 11 cases.  In re Rogers, Ch. 11 Case No. 14-40219, 2016 WL 3583299 (Bankr. M.D.

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Energy Future Holdings Chapter 11 Case – The Largest Game Ever of Texas Hold’em?

05/31/16

The chapter 11 case of Energy Future Holdings (“EFH” or “Debtors”) roared back to life this month.

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