US Trustee Balks At Nortel's Move To Shield Fees

Law360, Wilmington (February 27, 2013, 9:44 PM EST) -- The U.S. Trustee on Wednesday objected to a bid by Nortel Networks Inc. to evade new bankruptcy rules requiring retained attorneys to disclose the identities and fees of other professionals they hire, saying the defunct telecom can’t get a “blanket exemption.”

Nortel’s proposed waiver of the rules would undermine “transparency and accountability” for professional fees and expenses demanded by the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure, according to an objection filed in Delaware bankruptcy court.

“Such exemptions and waivers also impair the court’s...
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