Tag Archives: compensation

More Bad News for Bankruptcy Professionals – Baker Botts v ASARCO is Back Like a Boomerang

Last June, the Supreme Court issued a ruling in Baker Botts LLP v. ASARCO, LLC, which dramatically altered expectations that had previously been fairly widely accepted in many areas – the right of professionals representing debtors and creditors committees to be reimbursed by the estate for fees incurred in defending objections to their fees.  In ASARCO, the Supreme … Continue Reading

Can Estate Professionals Be Paid If Their Efforts Produce Nothing of Substance?

In the mid-1990’s I represented several trade creditors in a contentious Chapter 11 bankruptcy called Pro-Snax. At the creditors’ request, the bankruptcy court directed the appointment of a Chapter 11 trustee one month into the case. Nonetheless the dispossessed debtor pursued a Chapter 11 liquidation plan. The creditors, which held a clear “blocking position” in … Continue Reading