The U.S. Trustee assigned to the Paragon Offshore case filed with the U.S. Bankruptcy Court an objection to the Debtors’ motion for authority to (i) assume plan support agreement and (ii) modify the automatic stay.
The objection explains, “Through the Motion, Debtors seek authorization to pay the professional fees of certain unsecured creditors supported only by the alleged reasonableness of the Debtors’ business judgment….Pursuant to section 503(b), a party’s right to payment is not automatic but ‘depends upon the requesting party’s ability to show that the fees were actually necessary to preserve the value of the estate.'”
The objection continues, “Here, the Debtors have failed to demonstrate that the Consenting Noteholders’ and their professional’s made a substantial contribution to the case, arguing only that the payment of the Professional Fees is a reasonable exercise of the Debtors’ business judgment. In so arguing, the Debtors are impermissibly avoiding the mandatory evidentiary requirements of section 503 of the Bankruptcy Code. Unless and until the professionals can demonstrate that the fees were actually necessary to preserve the value of the estate, the Motion should be denied.”
Read more oil & gas bankruptcy news.
The post Paragon Offshore Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.