We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

GE Objects To Lawyers' Fees In Bankruptcy Case

Law360 (May 17, 2007, 12:00 AM EDT) -- A bankrupt furniture store chain has come under fire for “earmarking” one-third of the proceeds of a stock sale to pay the fees of its lawyers and consultants.

The Rowe Companies sought a bankruptcy court’s approval to issue the stock to American Communications as part of a plan to emerge from Chapter 11 protection.

But the agent for Rowe’s post-petition lenders, General Electric Capital Corp., has objected, arguing the motion violates the terms of the operative debtor-in-possession credit agreement.

In its objection filed Wednesday in the...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.