Maxus Ch. 11 Plan Releases Excessive, US Trustee Says

Law360, New York (May 18, 2017, 4:01 PM EDT) -- The U.S. trustee on Wednesday filed an objection to Maxus Energy Corp.'s Chapter 11 liquidation plan, saying it would give too much legal immunity to the liquidating trustee.

While Maxus has argued that language excusing the company's liquidating trustee, oversight committee and any professional advisers from liability for "punitive, exemplary, consequential or special damages under any circumstances" is necessary to induce trustees to serve, U.S. trustee Andrew R. Vara on Wednesday called the clause excessive.

"The bolded provisions are inappropriate and provide a greater exculpation to the...
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