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Administrative Expense Claims

Sixth Circuit Enforces a ‘Carveout’ for Professionals after Conversion to Chapter 7

The appeals court barred the secured lenders from renegotiating a carveout when a chapter 11 reorganization failed.
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Chapter 11 Super Priority Claims Retain Exalted Status After Conversion to Chapter 7

Super priority claims are not created under Section 503(b) and therefore don’t take a back seat to chapter 7 administrative claims.
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Wisconsin Judge Slashes Quarterly Fees to the U.S. Trustee Program

Judge Furay interprets ‘disbursements’ not to include the daily sweep of a collection account in a revolving credit.

Disgorgement by Professionals Is Not Required in an Administrative Insolvency

Jevic doesn’t mandate forcing professionals to disgorge interim allowances to achieve a pro rata distribution to administrative claimants in an administrative insolvency.

Chapter 7 Trustee Is Paid in a Case Converted to Chapter 13

Courts split on allowing compensation to a chapter 7 trustee when the case is converted to chapter 13 before distributions were made.

Ninth Circuit Requires Explicit Objection to Avoid Forfeiting an Appeal

Ethical issues abound when a committee counsel’s own financial interest conflicts with its client’s interests.
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Specific Request Required for ‘Admin’ Claim after Contract Rejection

A creditor’s expenses in removing its equipment after contract rejection is not entitled to administrative status.

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