Getting Paid For Prepetition Work

Law360, New York (July 28, 2010, 3:37 PM EDT) -- In late summer 2005, federal authorities seized the assets of the Bayou family of funds and placed the funds' principals in custody.

Because of disagreements among the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission and the Department of Justice, however, the government did not immediately seek the appointment of an equity receiver for U.S. Bayou entities ("Onshore Entities"). As a result, in January 2006, various investors who had been unable to redeem their investments before the funds' collapse formed an Unofficial Committee to...
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