East Cost Miner, LLC v. Nixon Peabody, LLP

(E.D. Ky. Oct. 3, 2017)

The district court affirms the bankruptcy court’s interpretation of a final cash collateral order, holding the bankruptcy court did not abuse its discretion in finding a carve-out for payment of professional fees included prepetition collateral of the lenders. The text of the order along with a review of the case record made clear that the parties had agreed the prepetition collateral was included. $2.4 million in fees were awarded. Opinion below.

Judge: Wilhoit

Attorneys for Appellants: Luskin, Stern & Eifler LLP, Alex Talesnick, Michael Luskin; Fowler Bell PLLC, Matthew David Ellison, Taft A. McKinstry

Attorneys for Appellees: Nixon Peabody LLP, Christopher M. Desiderio, Dennis J. Drebsky; Amelia Martin Adams, Laura Day DelCotto; Squire Patton Boggs, Eliot M. Smith, Stephen D. Lerner; Foley & Lardner, LLP, David B. Goroff, Edward J. Green, Geoffrey S. Goodman; T. Kent Barber; John L. Daughtery; Rachelle Cathleen Dodson; Phaedra Spradlin

2017-10-03 – in re east coast miner

Author: Matt Lindblom

In re Licking River Mining, LLC

(Bankr. E.D. Ky. Aug. 21, 2015)

The bankruptcy court approves the final fee applications of the Chapter 11 professionals following conversion to Chapter 7. The secured lenders objected on a number of grounds. The court first determines that certain funds should be turned over to the Chapter 7 trustee despite the lenders’ prepetition liens. The court also determines the requested fees are reasonable and for actual and necessary services. Finally, the court determines that the fees are within the authorized “carve-out” amounts and can be paid from the lenders’ collateral, despite the fact that the lenders had appealed certain earlier orders on fee applications based on procedural issues. Opinion below.

2015-08-21 – in re licking river mining

Author: Matt Lindblom