Lenders Stonewall Legal Fees In DBSI Ch. 11

Law360, New York (January 9, 2009, 12:00 AM EST) -- The first fee requests by the firms representing DBSI Inc. in Chapter 11 are being blockaded by banks who argue the firms must not be paid from cash collateral securing loans to the foundering real estate investment company.

On Wednesday, the lenders, led by Wells Fargo Bank NA, lodged objections in the U.S. Bankruptcy Court for the District of Delaware to the roughly $600,000 sought by debtors’ counsel, Young Conaway Stargatt & Taylor LLP, and to approximately $250,000 billed by special counsel Foley & Lardner LLP...
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