Creditor Challenges Fees In Collins & Aikman Case

Law360, New York (December 7, 2006, 12:00 AM EST) -- A mutual fund that is one of the largest creditors in the Chapter 11 case of Collins & Aikman Corp. has asked the court to withhold all professional fees until a fee examiner can inspect them.

Third Avenue Value Fund, which is owed $250 million, filed a motion Monday with the U.S. Bankruptcy Court in Detroit, saying there was no hope of substantial recovery for unsecured creditors and that professionals should not be allowed to continue feeding “at the trough after the trough is already empty...
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