Surety Firms Lose Bid To Block Fees In Cloud Peak Ch. 11
By Rick Archer (June 1, 2020, 9:07 PM EDT) -- A Delaware bankruptcy judge on Monday approved a request by coal mining company Cloud Peak Energy to pay $26 million in fees to its Chapter 11 professionals over objections by insurers insisting $280 million in surety bond claims should get equal priority.
U.S. Bankruptcy Judge Christopher S. Sontchi approved the request over an objection by eight insurance companies including North American Specialty Insurance Co., Arch Insurance Co. and Aspen American Insurance Co., which argued the motion unfairly favored the professionals over their own administrative claims.
Cloud Peak and 27 affiliates hit Chapter 11 in May 2019. The company got approval for...
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