GE Objects To Lawyers' Fees In Bankruptcy Case

Law360, New York (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...
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