Stormy Seas For Indenture Trustees

Law360, New York (December 1, 2016, 5:19 PM EST) -- Recently, in Caesars Entertainment Operating Co., U.S. Bankruptcy Judge A. Benjamin Goldgar of the Northern District of Illinois denied payment of indenture trustee Wilmington Trust’s attorneys’ fees and costs in connection with the debtors’ motion to approve a settlement. The U.S. trustee objected to payment arguing that the debtor could not rely on 11 U.S.C. § 363 (seeking settlement approval) as authority to pay Wilmington Trust’s fees and costs. Sustaining the U.S. trustee’s objection, the court found that as a matter of statutory interpretation, indenture trustee legal...
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