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Bankruptcy Court Upholds U.S. Trustee's Objection to Fee Defense Provisions in Boomerang Tube Case

Submitted by jhartgen@abi.org on

The U.S. Bankruptcy Court for the District of Delaware on Friday sustained objections of the U.S. Trustee in the case of Boomerang Tube, LLC to the fee applications by counsel to the unsecured creditors’ committee because “they include a provision indemnifying them for expenses incurred in any successful defense of their fees.” The U.S. Trustees objected to the inclusion of the fee defense provisions in the retention applications, contending that the provision is precluded by the recent Supreme Court holding in ASARCO.