The U.S. Trustee assigned to the Energy Future Holding (EFH) case and Somervell County filed with the U.S. Bankruptcy Court separate objections to EFH’s Seventh Amended Joint Plan of Reorganization as it applies to the EFH and the EFIH Debtors (the E-Side Plan).
The Trustee asserts, “The E-Side Plan cannot be confirmed to the extent that it seeks approval of the payment of the reasonable fees and expenses of both the EFH and EFIH Indenture Trustees without thosepayments being authorized by the Bankruptcy Code and which payment would otherwise be inconsistent with prior rulings by this Court in these Chapter 11 cases. Absent additional evidence, amendments or revisions to the E-Side Plan and the proposed E-Side Confirmation Order consistent with these concerns, the Court should deny confirmation of the E-Side Plan to the extent of this Objection.”
In addition, “The problem with Article IV. Section R.1. of the E-Side Plan is that it provides for the payment of the afore-mentioned fees and expenses without enunciating or specifying the legal basis or justification for such payments under the Bankruptcy Code. Article IV. Section R.1. also runs contrary to prior rulings by this Court in these cases.”
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