Trustee Balks At Reimbursement In Marcal Case

Law360, New York (July 30, 2007, 12:00 AM EDT) -- The U.S. Trustee overseeing Marcal Paper Mills Inc.'s Chapter 11 proceedings has objected to Apollo Capital Management LP's quest for reimbursement, arguing that the private equity firm should not be eligible for compensation just yet despite bankrolling the paper company's reorganization plan.

On Friday, U.S. Trustee Kelly Beaudin Stapleton filed a protest in the U.S. Bankruptcy Court for the District of New Jersey, opposing Apollo's request for $750,000 to cover the expenses the financier has purportedly incurred throughout Marcal's bankruptcy proceedings.

“At this juncture of the...
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