US Trustee Says It's Owed Fees On $90M Paragon Deal

Law360 (June 10, 2021, 4:03 PM EDT) -- The U.S. Trustee's Office told a Delaware bankruptcy judge on Thursday that it's owed a fee on the planned distribution of $90 million in settlement proceeds by a trust set up by bankrupt Paragon Offshore, arguing it's effectively a payment under Paragon's Chapter 11 plan.

At a virtual hearing before U.S. Bankruptcy Judge Christopher Sontchi, counsel for the federal bankruptcy watchdog argued it has a legal right to the payment, despite arguments by both oil rig company Paragon and the trust that the U.S. Trustee has already collected everything it can on this settlement.

Under its Chapter 11 plan confirmed in...

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