Houston Court Questions the Utility of the J. Alix Protocol in Retaining Turnaround Advisors and their Firms

In In re McDermott International, Inc., et al., Case No. 20-30336 (Bankr. S.D. Tex. May 20, 2020) [Dkt. No. 916], Judge Jones called into question the usefulness of the J. Alix Protocol in retaining turnaround advisors and their firms during a bankruptcy case.  According to Judge Jones: While innovative at its inception, the Alix Protocol […]

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In Defense of Professional Fees

In In re Hungry Horse, LLC, Adversary Proceeding No. 16-11222 (Bankr. D. N.M. September 20, 2017) (“Hungry Horse”), the New Mexico Bankruptcy Court reminded us that many U.S. Supreme Court opinions can be limited in scope and do not necessarily dispose of all potential remedies to an issue. The issue in Hungry Horse—as in many […]

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Wow! Fifth Circuit Eases Standard for Awarding Professional Fees

In a long-awaited opinion, the Fifth Circuit Court of Appeals recently reversed its ruling in Pro-Snax Distributors, Inc., 157 F.3d 414, 426 (5th Cir. 1998), providing that a bankruptcy professional can only collect fees for services provided to a bankrupt debtor that “resulted in an identifiable, tangible, and material benefit to the bankruptcy estate.”  See Baron & Newburger, P.C. […]

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Texas District Court Affirms Fees in Stellar Case

In an appeal in ASARCO LLC’s chapter 11 bankruptcy case, pending in the Southern District of Texas, the U.S. District Court recently affirmed the Bankruptcy Court’s award of a fee enhancement, a.k.a. a fee bump, to ASARCO‘s bankruptcy counsel, which had obtained “extremely favorable” results for the Debtor and its creditors.  See ASARCO LLC v. Baker Botts, L.L.P., Case No. 2:11-CV-290 (S.D.T.X. […]

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Filings plummet but US firms reap big bankruptcy profits – The Global Legal Post

Filings plummet but US firms reap big bankruptcy profits – The Global Legal Post.  As reported: “US law firms continue to rack up significant fees in bankruptcy work despite a 14 per cent drop in business filings, recently published research has revealed. A report on the AmLaw Daily web site maintains that although corporate bankruptcy filings have […]

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Fifth Circuit Upholds Fee Award of Debtor’s Counsel Who Received Retainer by Creditor

In Robbye R. Waldron v. Adams & Reese, L.L.P. (In re American International Refinery, Inc.), the Fifth Circuit Court of Appeals recently upheld the fee award to bankruptcy counsel to the debtor, notwithstanding that such counsel was indirectly paid a pre-bankruptcy retainer by a secured creditor of the debtor. The Court did, however, affirm the bankruptcy […]

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