02/07/2017
S. Jason Teele, Jack O'Connor and Michael Brandess publish article entitled, "The Effectiveness of Creditors’ Committees in Chapter 11 May Be Under Attack" in DailyDAC
The Delaware Bankruptcy Court has ruled that professional fees are not limited to the amount of the “carve-out” approved as part of a postpetition financing order. In In re MolyCorp, Judge Sontchi ruled that counsel fees, which are otherwise approved by the court, must be paid to confirm a plan of reorganization, even if the approved fees exceed the “carve-out” amount. Trade Creditors should pay particularly close attention to this ruling.