Creditor's Self-Interest Precludes Fee Reimbursement From the Estate

Overview: In In re Tropicana Entertainment LLC , 2012 WL 3776531, No. 10-3970 (3d Cir. Aug. 31, 2012), the United States Court of Appeals for the Third Circuit recently held that the fees of an ad hoc noteholder committee were not reimbursable as an administrative expense. The fee request was denied because there was no evidence showing the committee’s actions were not self-interested. Notably, the fees were not reimbursable despite the debtor’s willingness to compensate the noteholder committee for its fees.

Read the full Pachulski Bulletin attached below.