Date of Decision:
January 5, 2017
Whether a law firm was eligible to serve as counsel for the chapter 11 debtor in possession and was entitled to be paid from the bankruptcy estate for its services and reimbursed for its expenses incurred through the conversion of the case to chapter 7?
Yes. The Court could not conclude the law firm was ineligible to serve as the debtor’s local general bankruptcy counsel pursuant to 11 U.S.C. § 327(a) while the debtor was a chapter 11 debtor in possession, so no fees sought by the firm were disgorged or disallowed on these grounds. After deducting some fees for services that did not benefit the bankruptcy estate, the Court authorized the balance of the firm’s requested fees to be paid pursuant to 11 U.S.C. §§ 330(a), 503(b), and 507(a).
Full Bankruptcy Court Decision: