Schulte Hits Back At FDIC Over Colonial Fees Issue

Law360, New York (March 4, 2010, 6:14 PM EST) -- Schulte Roth & Zabel LLP has blasted as "patently absurd" Federal Deposit Insurance Corp. allegations that the firm is wasting time and running up the bills for the estate of bankrupt bank-holding company Colonial Bancgroup Inc.

Schulte's client, the unsecured creditors committee, is fighting a $1 billion, "utterly without merit" FDIC claim on the estate, and the legal fees are justified, the firm said in a motion filed Wednesday in the U.S. Bankruptcy Court for the Middle District of Alabama.

On Monday the FDIC said Schulte's...
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